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Markets rise as banks shine

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In the week that passed, we saw the markets rise – primarily on account of heavy buying in the Banking and Financial Services (BFSI) industry. As you will see below, the Bank Nifty index rose close to 10% – that’s huge!! This is a good example of how a few names cause movements in the broader stock market. That’s why analysts have tried to come up with innovative acronyms to represent a select few stocks that dominate the stock market movements. Read on for more…

Matter of Fact

The advent of the 21st century saw immense amount of growth in the technology industry, especially in the U.S! So much so, that a select few names became responsible for the movement in the broader market index. These names became so big, they started being called “Big Tech” because of their sheer size and market dominance. For example, ‘FAANG‘ became a popular acronym that represented 5 prominent tech stocks – Facebook, Amazon, Apple, Netflix, and Google.

This story is true for India as well. ‘HRITHIK‘ is an acronym given to the 7 of the most dominant companies in the country. HDFC Bank, Reliance Industries, Infosys, TCS, HDFC, ITC and Kotak Mahindra Bank. These 7 stocks are so big that they almost make up 50% of the weightage in the Nifty50!
Interesting right? Tweet this and see if your followers knew about this acronym! 👇

'FAANG' is an acronym that refers to the stocks of 5 prominent technology companies: Facebook, Amazon, Apple, Netflix and Google. Similarly, 'HRITHIK' represents the stocks of 7 dominant companies in India. Can you name the companies? Click To Tweet

Markets Update

Nifty 50

11,647.60

2.43% ▲

Sensex

39,467.31

2.69% ▲

Nifty 500

9,641.05

2.31% ▲

Bank Nifty

24,523.80

9.97% ▲

Strong global cues and heavy buying in the Banking and Financial Services Industry (BFSI) stocks led benchmark indices to close in the green, this week.

The Big Picture

Gold prices recovered from Thursday’s drop with investors weighing in the impact of the Fed’s signal of higher inflation tolerance
India’s bank loans grew at 5.5% year-on-year (YoY) while deposit growth stood at 11.0% on a YoY basis as per the new data released by RBI

Investing Insights

REITs – Re-thinking Real Estate Investments

We’ve all thought about investing in real estate sometime or the other. While it might be prudent to invest in real estate, we must understand that real estate investments have it’s inherent drawbacks. Inter alia, real estate requires a large initial investment amount. Also, real estate is illiquid – it is hard to buy and sell real estate quickly and at the right price.

Real Estate Investment Trusts (REITs) are a new age financial product that helps all investors – big and small – invest in large scale, diversified portfolios of real estate. The initial investment amount is not high and liquidity is not a concern because REITs trade on stock exchange everyday – just like other stocks. REITs have the potential of changing the way we think about real estate investments.

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Abhishek Jadon

VP, Investment Products at Windmill Capital.

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