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Infosys, TCS, and Wipro might be in trouble! Here’s why— Lately, although the entire stock market has been volatile, the Indian IT sector is facing its own downward spiral. The Nifty IT index alone has plunged about 17% since the start of the year, compared to a 7% drop in the broader Nifty 100. What could be the reasons? Before that, you need to keep in mind that most IT companies in India make money by exporting their services to the world, mainly to the US and Europe. So the ongoing volatility in the West is slightly to be blamed here. Take for example Donald Trump’s plan to impose reciprocal tariffs on India. Indian IT companies have thrived because of the labour arbitrage between India and the West. This means because of relatively cheap labour in India, they have been able to convince companies to outsource their IT requirements to us. But if tariffs are put in place, this would make Indian IT lose its competitive advantage. Plus Trump is also tightening immigration, which is further going to complicate things for IT players. Also, the US economy isn’t doing that great.  Earlier the stock markets expected a smooth economic Transition, allowing interest rates to drop and boosting IT spending. However, with inflation still high in the US and Trump’s policies adding uncertainty, rates might stay elevated for a while. US treasury yields have already jumped from 3.6% to 4.8%, making it costlier for businesses—especially in banking, telecom, and retail—to invest in IT services. Overall, the industry is now adjusting to AI and new cloud technologies. This means a temporary slowdown before the next wave of demand kicks in. So what do you think will happen with Indian IT next? Do you think they can brave these odds or the golden chapters for India’s IT sector are a thing of the past, let us know in the comments, and follow Finshots for more!

66% of the government's revenue comes from taxes—direct (income & corporate) and indirect (GST, excise, & customs). But is that too much reliance on one source? Should the government diversify its income streams? Drop your thoughts in the comments and follow Finshots for more!

IndusInd Bank lost nearly Rs 20,000 crore in a single day! Here’s what happened 👇 Earlier this week IndusInd bank admitted to an accounting issue related to certain derivative transactions, because of which they readjusted their valuation down by Rs 1,500 Crore. The stock market didn’t take kindly to this revelation—IndusInd’s share price plunged nearly 25% in a day, wiping out nearly ₹20,000 crore in market capitalization. So, what went wrong? Why did they have to adjust their valuation? Well, IndusInd had been using forex derivatives to hedge risks. In simple terms, the bank held foreign currency deposits and took loans from abroad, making it vulnerable to exchange rate fluctuations. To manage this risk, it used derivative contracts to lock in exchange rates. But here’s the issue—IndusInd wasn’t accounting for gains and losses consistently. Profits were booked immediately, making the bank’s financials look strong, while losses were quietly parked under “other liabilities,” effectively hiding them from view. For years, this mismatch went unnoticed. However, in April 2024, the RBI introduced new accounting rules requiring banks to mark all their derivative transactions to market daily. It also banned internal hedging, meaning banks could no longer manage forex risk internally but had to go through the market. When IndusInd applied these new rules, the discrepancy became glaringly obvious. Realizing the problem, the bank hired an external agency in October 2024 to review its books. The review confirmed that IndusInd’s net worth had been overstated by ₹1,500–2,000 crore. The bank disclosed this information as soon as the review was complete, triggering a massive sell-off. IndusInd’s CEO, Sumant Kathpalia, insists that despite this hit, the bank remains profitable and well-capitalized. The bank has assured investors that its capital adequacy ratio will remain above 15%, even after absorbing this loss. Even the promoters, led by Ashok Hinduja, have reaffirmed their financial strength and readiness to infuse more capital if needed. But here’s the real issue—trust. Can investors be sure that this was the only miscalculation? And with the RBI giving the CEO just a one-year extension instead of three, is the regulator hedging its own bets? Let us know your thoughts in the comments, and follow Finshots for more!

Will you have to start paying for UPI transactions soon? What do you think? Let us know in the comments and follow Finshots for more!

Is 24-hour stock market a good idea? Until 1952, the US stock market ran for five and a half days, which was later reduced to five days a week. But funnily, trading hours gradually crept upward since then. By Oct 2024, NYSE Arca announced plans to extend trading to 22 hours on weekdays. This move aligns with the US SEC's already approved 24-Exchange (24X)—stock exchange designed for 23-hour, five-day-a-week trading. And now NASDAQ is considering a similar 24/5 structure. The reason for this trend is convenience and globalization. Investors today trade with a few taps on their phones. Plus, foreign investors now hold over a quarter of the $62 trillion US equity market and often struggle with time zone mismatches. Extending trading hours not only solves this problem but also speeds up price discovery, allowing stock prices to adjust to news in real-time instead of waiting for the next day’s opening bell. But moves like these come with their challenges. Do you think a 24-hour stock market is a good idea? Read the full story in today’s newsletter and follow Finshots for more! https://lnkd.in/gWCmDvkV

BCCI is over 6 times richer than the next 9 boards combined!! Why do you think it is so? Let us know your thoughts in the comments and follow Finshots for more!

Is Tether's dominance at risk? Last week, Binance, the world’s top crypto exchange, dropped a bombshell announcing delisting of Tether’s USDT in Europe by FY25 due to the EU’s new MiCA regulations, which demand full transparency, regulatory approval, and sufficient reserves for stablecoins. Stablecoins are digital assets pegged to the US dollar, and their value is maintained through reserves. Tether, the biggest stablecoin with a $140 billion market cap, didn’t meet these standards. While widely used for payments and savings, especially in inflation-hit countries like Argentina and Turkey, Tether has long been surrounded by controversy. It has been fined for misleading claims about its reserves and accused of being used for illegal activities. Now, countries like Turkey, Nigeria, and the US are making stricter rules for stablecoins, and the EU has even limited the use of Tether tokens issued outside Europe. If this continues, Tether might have to risk losing its dominance. What do you think? Will Tether’s dominance fade away? Read the full story in today’s newsletter and follow Finshots for more! https://lnkd.in/gGhsV_nW

A company with booming revenues and a ₹7,000 crore order book just saw its stock crash 40% in five days. What went wrong? Gensol Engineering’s stock has crashed 40% in just five days after credit rating agencies flagged serious financial troubles. Despite having a ₹7,000 crore order book and a history of strong revenue growth, the company’s high debt, delayed loan repayments, and excessive promoter share pledging have shaken investor confidence. Although the Gensol management says that cash flow mismatches from big projects are to be blamed and claim the company to be under damage control pointing to its ₹7,000 crore order book, the market isn't convinced. So, is Gensol’s stock crash an overreaction, or were the warning signs there all along? And more importantly, how can retail investors spot such troubles before it’s too late? Read the full story in today’s newsletter. https://lnkd.in/gHkUfbZC

Did Reliance steal $1.8 billion worth of ONGC’s gas? 🤔 A decade-long battle between India’s energy giants, Reliance and ONGC, just took a dramatic turn. An Indian court overturned an international arbitration ruling, raising serious questions about contracts, investment security, and energy disputes in India. Did Reliance break the law? Or was it just smart business? Watch this deep dive to find out! https://lnkd.in/gFNzBNM9

Can DMart beat Instamart, Blinkit and Zepto? Let us know what you think and follow Finshots for more!