Wise Investing

What is wrong with IndusInd Bank IndusInd Bank had on Monday disclosed that an accounting miss could wipe about Rs 2,100 crore from its net worth after a change in RBI norms. IndusInd Bank bled on the bourses on Tuesday, with its stock logging its biggest-ever decline, falling  More then 27 % single day  This stock reaction followed the Mumbai-headquartered lender’s disclosure on Monday that an accounting miss could wipe about Rs 2,100 crore from its net worth. The issue was spread over multiple years and related to transactions in the derivatives segment. But the bank’s Chief Executive Officer said he expects the private lender to clock a profit in the March quarter — and the entire FY25 — despite the hit. What’s the issue at IndusInd Bank In 2023, the RBI directed some changes regarding the investment portfolio of banks which kicked in from April 1, 2024. Earlier, banks’ asset liability management and treasury desks could do internal swaps, where one cash flow can be exchang...

Understanding needs, wants, and desires Line of Growth we need  Managing money is about taking care of income and expenses. The expenses include various regular expenses, financial goals, investments, tax payments, and payments towards insurance premiums, among others. The regular expenses or even some of the large lump sum expenses could be towards basic needs or towards wants or desires. While the three terms are often used interchangeably, they are not, and hence, it is important to understand the difference between them. Needs: These are things that are essential for our survival and well-being. Food, a roof over the head, water, clothing, and healthcare are among some examples of needs. It is not possible to live without these, and hence the needs assume priority when one plans one’s spending budget. Wants: Once the needs are met, we strive for things beyond those, for things that are not essential for our survival but enhance the quality of life. Entertainment, travel, and lu...

Hello every one lets understnad  Dow theory   To understnad to Decode market  moves  There are six main components to the Dow Theory. 1. The Market Discounts Everything The Dow Theory operates on the Efficient market  hypothesis which states that asset prices incorporate all available information. Earnings potential, competitive advantage, management competence—all these factors and more are priced into the market, even if not everyone knows all or any of these details. In more strict readings of this theory, even future events are discounted in the form of risk. 2. There Are Three Primary Kinds of Market Trends Markets experience primary trends which can last a year or more, such as a bull or bear market. Within the broader trends, secondary trends make smaller movements, such as a pullback within a bull market or a rally within a bear market; these secondary trends can last a few weeks to a few months. Finally, minor trends can last a few days t...