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

Market

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.

If the US has its FAANG stocks...
FACEBOOK, APPLE, AMAZON, NETFLIX, and GOOGLE

We have our HRITHIK stocks....
HDFC, RIL, INFY, TCS, HUL, INDUS, KOTAK BANK

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— Deepak Asher (@deepakasher) July 15, 2018

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.

Nifty vs Smallcap Index: Moving in completely opposite direction. Message is Loud and Clear. Invest only in HRITHIK stocks or stay out of market! (H)DFCBank, (R)IL, (I)nfy, (T)CS, (H)DFC, (I)ndusInd, (K)otakBank #Nifty

— Noiseless Trading (@LargeLotTrader) July 14, 2018

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

US has #FAANG - Facebook, Apple, Amazon, Netflix and Google

We have #HRITHIK – HDFC, #RIL, Infy, TCS, HUL, Indusind, Kotak

But for every #HRITHIK, there is a #ROSHAN also which most investor holds – RCOM, ONGC, Suzlon, HCC, Aban, NTPC #India #Nifty #Sensex #Stocks #Equities

— Gaurav Dedhia (@gauravdedhia2) July 13, 2018

What’s worse, there are also KANGANA stocks.

US has FANG - Facebook, Amazon, Netflix and Google

We have HRITHIK – HDFC, RIL, Infy, TCS, HUL, Indusind, Kotak

But for every HRITHIK, there is a KANGANA also – Kitex, Aban, NHPC, GATI LTD, ABCAPITAL, NTPC, Ansal Properties.#BSE #NSE #SENSEX #NIFTY #STOCKMARKET #ACEEQUITIES

— Prem Doshi (@StocksResearch) July 13, 2018