Finshots Profile picture
Aug 23, 2019 6 tweets 2 min read Read on X
So the Rupee is falling and we thought it would be a nice idea if we could post a short thread simplifying a few reasons why our currency is slipping
#RupeeVsDollar #Rupee
1. US-China trade war. Long story short, when two global giants slug it out & bleed themselves dry, it leaves a gaping hole in the global economic fabric. Slow growth globally means slow growth in India because India is also a part of this fabric.
2. Also, there's all this talk about a slowdown & stuff. So investors aren't really stoked about investing in India. Which means that the Indian rupee is no longer in demand because you need the Rupee to invest here. And when something isn't in demand, its value deteriorates
3. Also, many investors who believed the government would usher in a new era of economic prosperity have been left bitterly disappointed with the budget which increased taxes on Foreign Portfolio Investors ( read as people overseas who invest in Indian markets)
4. These foreign investors are in turn pulling out their money and are moving it to relatively safer places, like US Government bonds. And in the process, they exchange the rupees that they owned, for the dollars needed to buy US bonds.
5. This creates more demand for the dollar pushing its value up, while the Rupee depreciates because nobody wants it anymore. Also if you can think of other reasons why the rupee is on the slide. Please add them on this thread. Will help out other people. Cheers

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More from @finshots

Mar 27
India buys over 30% of the world’s scrapped tyres! But why? 🧵👇 Image
1/ India is one of the world’s largest tyre manufacturers, producing 20 crore tyres annually.

And we don’t just cater to domestic demand. Our tyre exports are booming too—₹12,000+ crore worth in just H1 FY25.

But here’s the irony–
2/ While we export fresh tyres, many Western nations are sending us something in return–

Their used-up, end-of-life tyres (ELTs).

India imports 30% of the world’s scrapped tyres. And in 2023 alone, we received 800,000 tonnes of them!
Read 14 tweets
Mar 12
IndusInd Bank lost nearly ₹20,000 crore in a single day! What went wrong? Let’s break it down 🧵👇

1/ Earlier this week, IndusInd Bank admitted to an accounting issue related to its derivative transactions. Image
2/ Because of this, the bank had to adjust its valuation down by ₹1,500–2,000 crore.
3/ The market didn’t take this lightly—IndusInd’s stock crashed nearly 25% in a day, wiping out ₹20,000 crore in market cap. But why did this happen? What was the mistake?
Read 13 tweets
Mar 11
UPI Transactions No Longer Free? 🧵👇

1/ UPI has undoubtedly reformed the digital payment landscape, especially by keeping transactions free for both merchants and users. Image
2/ But that could change as Fintechs have requested the government to reintroduce MDR (Merchant Discount Rate)—a fee merchants pay for real-time payment processing on UPI and RuPay Debit Cards.
3/ But, why now? Let’s take it from the top.

Before 2020, banks and fintechs charged merchants MDR on UPI. However, in 2020, the government scrapped these fees to boost digital adoption.

And for banks and fintechs this meant that they had to process transactions for free.
Read 11 tweets
Mar 11
Do we need 24 hour stock markets?🧵👇

1/ Until 1952, US stock markets used to work 5.5 days a week!
Then, they switched to a 5-day schedule but added 30 minutes to weekday trading hours to compensate.
But now, markets are expanding again—almost 24/5. Image
2/ Over time, trading hours gradually increased:

- 1974: NYSE extended its closing time from 3.30 PM to 4 PM.
- 1985: Opening time shifted from 10 AM to 9.30 AM.
- October 2024: NYSE Arca announced plans for 22-hour trading.
3/ 2024: SEC approved 24X, a stock exchange allowing 23-hour, five day-a-week trading.
- 2025: NASDAQ also revealed plans for 24-hour trading on weekdays.

Stock markets are slowly moving towards a non-stop trading world.
Read 18 tweets
Mar 1
1/ Running an airline is tough. Costs are high, competition is cutthroat, and profits are rare. Just ask Jet Airways or Go First. Even Air India needed a Tata bailout.

But amid all this, one airline seems to be making a comeback—SpiceJet. Here’s how. 🧵👇 Image
2/ For years, SpiceJet was in trouble—debt-ridden, losing market share, and struggling to stay afloat. But in Q3FY25, it turned a profit of ₹26 crores. A huge shift from its ₹300 crore loss in the same quarter last year. So, what changed?
3/ Three key factors:
✅ Debt restructuring
✅ Fleet expansion
✅ Operational efficiency

Let’s break them down.
Read 11 tweets
Feb 7
1/

Is Volkswagen being forced to leave India by the government? 👀🚗

The govt is asking them to pay up $1.4 billion in taxes!

But why? Find out below 🧵👇 Image
2/

Indian tax authorities claim that Volkswagen owes them huge import duties.

It all comes down to how they import car parts. Let’s break it down.

Automakers like Volkswagen don’t build cars from scratch in India. Instead, they source parts from all over the world.

Think of it like assembling an IKEA table—you get multiple parts from different places and put them together.
3/ Here’s how it works:

🔹 VW’s software predicts demand for cars
🔹 It then orders 1,000 Skoda Kushaqs, for example
🔹 The system splits the order into 700–1,500 individual parts
🔹 Suppliers across the world (Germany, Mexico, Czech Rep.) ship these parts to India
Read 13 tweets

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