Some low beta stocks shine as market volatility rises

ET Intelligence Group: Low beta stocks gain prominence in times of heightened market volatility. Amid rising geopolitical tensions, only 135 or over one out of every four stocks in the BSE 500 index have clocked 1% or higher returns over the past month and just 35 of them have gained in double digits. In either case, over half of the stocks sport a beta ratio of 0.9 or lower, signifying the rising importance of stocks that show lesser volatility than the broader market. The benchmark Sensex has lost nearly 6% during the period as investors cautiously assess the impact of the conflict in West Asia.

ETIG has identified 13 stocks that achieved double-digit returns across one month, year-to-date, and year-on-year periods. A majority of these companies have India-centric operations and have shown improving margins and impressive revenue and profit growth in FY26 so far. The list includes Hitachi Energy India, Finolex Cables, Aster DM, Krishna Institute of Medical Sciences, Linde India, Schaeffler India, Solar Industries, JB Chemicals and Pharmaceuticals, Great Eastern Shipping, and Vardhman Textiles among others.

In addition, six stocks currently trade near their 52-week highs notwithstanding the current market volatility. These include Hitachi, Aditya Birla Sun Life AMC, Schaeffler, Great Eastern Shipping, Vardhman, and JB Chemicals.

Hitachi Energy India topped the list with 34% month-on-month return. The stock of the company, which provides electricity grid management and automation solutions to the power sector, has nearly doubled in a year following strong financial performance supported by rising order book. It reported a record-high order backlog of around ‘29,900 crore at the end of December 2025.

Hitachi was followed by Finolex Cables and Aster DM Healthcare with monthly stock returns of 30% and 25% respectively.

A beta below one reflects stocks that are less susceptible to market fluctuations. The rising market volatility may affect a stock’s beta coefficient.

In the case of BSE 500 companies, the number of stocks having a beta of either 0.9 or lower now stands at 217 compared with 172 at the beginning of CY2026 and 204 a year ago.