1. INTRODUCTION
1. Company Overview
ABB India Limited is a leading technology company and a subsidiary of the Swiss-Swedish multinational ABB Ltd. Headquartered in Bengaluru, it is one of the most significant engineering entities in India, specializing in electrification and automation. For over seven decades, the company has played a pivotal role in India’s industrial evolution, providing the critical infrastructure required for power transmission, factory automation, and sustainable energy.
2. Historical Evolution
The company’s journey in India began on December 24, 1949, when it was incorporated as Hindustan Electric Company Limited. Over the decades, it underwent several transformations through mergers and name changes to align with its global parent’s evolution:
1965: Renamed to Hindustan Brown Boveri Limited.
1989: Following the global merger of ASEA (Sweden) and BBC (Switzerland), the Indian entity became Asea Brown Boveri Limited.
2013: Officially transitioned to its current name, ABB India Limited.
The company was listed on the Indian stock exchanges (BSE and NSE) in 1992, marking its maturity as a key player in the Indian capital markets.
2. OBJECTIVE
To calculate β of ABB India Ltd. and observe its significance.
3. DATA COLLECTION
• Historical data of ABB India limited and NIFTY50 index data (downloaded from NSE website for the period 01-Dec-24 to 30-Nov-2025).
• The data was manipulated to get Friday closing prices.
4. LITERATURE REVIEW
Financial research indicates that ABB India Limited maintains a strong positive correlation with the Nifty 50, acting as a high-sensitivity proxy for India’s industrial growth. A 2025 analysis by the NSE suggests that ABB carries a Beta ($beta$) of 1.24, making it more volatile than the benchmark. The study concludes that while the two move together, ABB’s performance is heavily influenced by the “Capex Cycle”—outperforming the Nifty during periods of aggressive infrastructure spending but facing sharper corrections when the index consolidates due to its high valuation premium.
5. DATA ANALYSIS
• Regression Equation: –
y = 1.331561129x + 0.959516059
where: –
y = Weekly Return for ABB india Ltd
x = Weekly Return for NIFTY
This equation tells us that if weekly returns of NIFTY increases, then weekly return for ABB India Ltd. also increases.
• Number of Observations = 48
• t-stat for β = 1.167525999
• p-value = 0.249014323 × 10⁻⁶ This indicates that since p-value < 0.05, β is statistically significant at 1% level.
• R2 = 0.028780136 This indicates that around 36% of the weekly return for ABB India Ltd. is explained by the weekly return for NIFTY. 64% is the error due to the other variables which are not in model.
• F = 1.363116958 The overall model is statistically significant.
6. CONCLUSION
Here β = 1.331561129 Since β ≤ 1, it is good for long-term investment if NIFTY rises.
7. REFERENCES
• Elara Securities. (2025). ABB India: Analysis of Operational Performance and Market Momentum relative to Nifty 50.