Last Updated : Jul 19, 2018 07:48 PM IST | Source: Moneycontrol.com

So what if the US has FAANG stocks? India has HRITHIK companies

India’s answer to Facebook, Apple, Amazon, Netflix and Google is its own set of top performers.

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People love acronyms. Often, they are used to convey the idea of a theme succinctly. The world of finance is filled with them. From serious-sounding jargon such as EBITDA (earnings before interest, taxes, depreciation and amortisation) to a slightly-less serious-sounding one such as something that bands a group of countries together: BRICS (or Brazil, Russia, India, China and South Africa).

The latest acronym that has taken the investment world by storm is the FAANGs. It stands for a group of US technology giants that are changing the world, namely, Facebook, Apple, Amazon, Netflix and (Alphabet’s) Google. According to Investopedia, the term was first coined by CNBC analyst Jim Cramer when it was first named FANG (Apple wasn’t so hot then, apparently).

But FAANG stocks came into their own last year, when Wall Street could not have enough of them. Their performance has been so good that together they command a market cap of more than $3.1 trillion, which is much more than India’s GDP.

Investors now seem to have taken their love for acronyms a bit too far. Several tweets are doing rounds on India’s answer to the FAANG stocks: HRITHIK.

HRITHIK, as the buzz goes, stands for HDFC, RIL, Infosys, TCS, HUL IndusInd and Kotak Mahindra Bank.

The acronym seems to have been found amidst a market backdrop, which has been severely dichotomist. A select set of stocks has been performing well, and has pushed the benchmark indices to record highs. Everything else is languishing.

Here are the stats. The Sensex is up 6.7 percent this year. Compared to that, the midcap and smallcap indexes are down 15.4 percent and 18.5 percent, respectively.

So the message is: Invest only in HRITHIK stocks.

Because for every set of HRITHIK stocks, there are also the ROSHAN stocks.

What’s worse, there are also KANGANA stocks.

First Published on Jul 19, 2018 05:43 pm