SALMAN is short for six stocks, viz
(),, Larsen & Toubro, and Special Economic Zones, which have so far returned 21 percent in 2022.
Hrithik, on the other hand, is an acronym for Seven Bluechips –
The twins,,,, and who have posted a silent performance so far in the current calendar year.
According to market experts, Indian markets are under pressure amid high valuations, FII sales, geopolitical concerns, rising inflation and tightening of central bank finances.
“This is a bear market, not a correction. The bear market has a lot of stocks. If we can say that this is a bear market that will end in a few months,” said Samir Aurora, founder, in an interview with Helios Capital et NOW.
Data compiled from the corporate database AceEquity shows that SALMAN stocks outperformed HRITHIK stocks in both returns and asset loss.
Interestingly, HRITHIK stocks weigh about half as much as the Nifty 50 Index, but only two of them – Reliance Industries and Kotak Mahindra Bank – have given positive returns on a year-to-date (YTD) basis.
In contrast, only two SALMAN stocks – Axis Bank and Larsen & Toubro – failed to reward investors.
One should note that HRITHIK stocks are moving towards IT and financial sector, where SALMAN stocks are generally less volatile, and have seen a slow and steady rise in prices.
Among Hrithik stocks, Infosys has emerged as the biggest asset destroyer as the counter has fallen 20 percent since December 31. The scrap, which was fixed at Rs 1,889.65 on Tuesday, has wiped out Rs 1.56 lakh crore from investors’ kitty.
The consolidated HDFC twins have shrunk by 11-15 per cent since the beginning of the year, resulting in a sharp fall in market cap of Rs 1.61 lakh crore.
Despite such sharp corrections, Sourav Mukherjee, founder of Marseilles Investment Managers, has come out in favor of consolidation and sees the development as extremely positive.
“The HDFC-HDFC Bank merger is a fitting end to Deepak Parekh’s career as India’s smartest capital allocator. The merger will add value to both sets of shareholders and confirm that HDFC’s legacy plans have been taken care of, “Marcellus said in a newsletter last month.
Another IT major, Tata Consultancy Services, lost about 8 per cent during the period, with M-Cap deleting Rs 1.2 lakh crore. Private lender ICICI Bank fell 4 per cent, cutting more than Rs 20,000 crore in terms of M-cap.
“Be very conservative and weigh a little over the next 6 to 12 months on some consumer staples and pharma and some private banks,” said Girish Pai, head of research at Nirmal Bang Institutional Equities. “I will lose weight in IT and NBFC.”
On the other hand, four SALMAN stocks – including SBI, Maruti Suzuki, Adani Ports and NTPC – added more than Rs 42,600 crore to investors’ pockets, of which Rs 25,500 crore came from NTPC alone, an increase of 21 per cent so far in 2022.