Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 51 terms
India's currency, whose exchange rate against the dollar is itself an input into what listed companies earn.
A weaker rupee helps IT and pharma exporters and hurts importers, airlines and anyone paying for crude in dollars.
Investing a fixed amount regularly, buying more units when prices are low.
True, and modest. The real benefit of a SIP is removing twelve decisions a year.
A price axis where equal vertical distances represent equal rupee changes.
Correct for short windows and for anything about absolute levels — a stop, a target, a strike.
Revenue divided by assets — how much sales each rupee of assets generates.
It collapses during a capex cycle because capital arrives before revenue does.
A continuous futures series in which the earlier history is shifted up or down by the rupee gap at each roll, cumulatively, so the joins disappear.
It preserves point-for-point moves and destroys absolute levels — old prices are no longer prices anyone paid, and they move again at the next roll. Ratio adjustment does the same job by multiplication, preserving percentages instead of rupee distances.
How much capital a business must deploy to generate, and to grow, a rupee of revenue.
Return on capital multiplied by retention is how fast a company can grow without diluting you. Capital-light businesses compound faster because growth does not consume the profit.
The commodity India imports the large majority of and pays for in dollars, making its price an input into inflation, the trade deficit and the rupee at once.
The loop is the point: a spike widens the deficit, which weakens the rupee, which makes the same oil dearer in rupee terms. It hurts paints, tyres, airlines and logistics, and helps upstream producers.
A quote expressing how much of one currency it takes to buy another — USDINR being rupees per dollar, so a rising chart means a weaker rupee.
A ratio, not a price. Every move belongs to one of the two legs, and a stronger dollar worldwide is a different event from a weaker rupee specifically.
The exposure created when an asset is priced in a currency other than the one you spend in; your rupee return is roughly the asset return plus the currency move.
A US index up 10% with the rupee strengthening 6% leaves you about 4%. The asset did the same thing either way — which is why currency is a second exposure, not a technicality.
A fall in the multiple the market will pay for a rupee of a company’s earnings, usually because expected growth or the expected duration of that growth has been revised down.
Price is earnings multiplied by the multiple, so the two compound. Earnings up 12% with the multiple halved is a 44% fall, in a year when nothing went wrong.
Average total assets divided by average net worth — how many rupees of assets each rupee of owners’ money carries.
The second term in return on equity. It magnifies a bad year by exactly the factor it magnifies a good one, which is why two lenders with the same headline return are not the same investment.
The rate at which the general price level rises, reducing what a given sum of rupees can buy.
The risk a fixed deposit does not remove. The statement balance only ever rises, which is exactly why thirty years of erosion goes unnoticed.
The maximum output a company’s plants are rated to produce over a period, disclosed in units rather than rupees.
The ceiling on volume growth without fresh capital expenditure. Set beside actual production it gives capacity utilisation, and beside industry-wide additions it tells you what supply is coming.
The price of borrowing stock through SLB, quoted in rupees per share for the tenure and published daily by the exchange.
Divide it by the share price to get the cost as a percentage of the position, then weigh that against the move you expect. India publishes no short interest report, so a fee that has moved from a few paise to several rupees is the clearest public evidence that borrowing demand has risen.
A trendline drawn on a logarithmic price axis, where equal vertical distance represents equal percentage change rather than equal rupees.
On a linear chart a multi-year line curves away from price for purely arithmetic reasons. Anything over two years belongs on a log scale, or the line is measuring the axis rather than the trend.
The strike at which the largest rupee value of options would expire worthless, causing the greatest aggregate loss to option buyers.
There is a partial mechanism — writers hedging their exposure do exert some pull near expiry — but it is weak, easily swamped by news, and it recalculates as open interest shifts.
A momentum oscillator that weights price changes by the rupee value traded, bounded 0 to 100.
RSI with the money attached. Where RSI asks whether it went up, this asks whether anyone paid for it to.
A rupee account funded from foreign earnings, freely repatriable and with tax-free interest.
Invest from here if you may ever want the money back out without paperwork.
A rupee account for income earned in India, with repatriation capped annually.
Rent, dividends and pension land here. Sending money out needs a limit and a CA certificate.
The rupee amount an investment is worth on the date the money is actually needed.
The quantity that decides whether a goal is met. Percentages narrow as the horizon lengthens; the rupees at the end spread further apart.
The US dollar to Indian rupee exchange rate, and the most traded currency contract in India.
A weaker rupee helps IT and pharma exporters and hurts importers and oil companies. It redistributes rather than helping everyone.
Everything a company owns or is owed — cash, receivables, inventory, fixed assets, goodwill and investments.
One half of an identity that always balances, because every rupee of asset was funded either by a lender or by an owner.
Average True Range — the typical distance a security travels in a period, including gaps.
How far this stock normally moves. Set stops in ATR multiples, not in fixed rupees.
The average size of a bar's full range, including gaps, over a chosen period.
The unit of normal movement for a given stock. Stops and sizes measured in ATR travel between instruments; ones measured in rupees do not.
The distortion in a growth percentage caused by the size of the figure it is measured against.
The same ₹450 crore added is 25% growth on ₹1,800 crore and 11% on ₹4,050 crore. Plot the rupees added before the rate — a falling absolute addition hides inside a respectable percentage.
Free additional shares issued to existing shareholders in proportion to their holding.
The same pie cut into more slices. Your wealth does not change by a single rupee.
The external factor that most determines a sector’s fortunes.
Rates for banks, the rupee for IT, crude for paints. Write down what hurts a company before buying it.
Unsecured short-dated money-market paper issued by companies to institutional buyers, with an outer tenor of up to one year under the rules in force at the time of writing.
Cheap because the lender is exposed for weeks rather than years. Every rupee of it falls inside the next twelve months, always, and has to be reissued to somebody willing to buy it that week.
Growth applied to a base that includes previous growth.
It only works if the next rupee earns a good return too — which is what ROIIC measures.
Revenue growth restated at unchanged exchange rates, so currency movement is stripped out.
The honest growth number for Indian IT services. A weak rupee flatters reported revenue without a single extra hour having been billed.
Revenue minus variable costs — what each additional sale contributes towards fixed costs and profit.
The part of every extra rupee of sales that is actually left over to pay the rent.
Committing further resources to a failing course of action because withdrawing would require admitting the earlier commitment was wrong.
Each extra rupee is spent to avoid an admission, and enlarges the admission. It is distinct from sunk cost reasoning: the driver is not the money already spent but the social or personal cost of conceding.
Borrowing raised from overseas lenders or bond buyers in foreign currency, within the framework the Reserve Bank prescribes for who may borrow, from whom, for how long and at what all-in cost.
The headline coupon is not the cost. The cost is the coupon plus the hedge — and where it is unhedged, the cost is unknown until the rupee has moved.
Borrowings denominated in a currency other than the reporting one.
Cheap on the headline rate and expensive after a rupee move. Often unhedged.
The tendency to hold far more of your own country's equity than its share of global market value would justify.
Partly rational, since you earn and spend in rupees. The problem is that a wholly domestic portfolio stacks your job, your property and your savings on one economy, one currency and one regulatory regime.
Reading equities in the context of bonds, currencies, commodities and volatility.
Rates and the rupee are the tide. Studying one boat will not reveal it.
A price axis where equal vertical distances represent equal percentage changes.
The honest axis for anything spanning years, because a holder cares about percentages rather than rupees.
The rate paid on borrowings raised during the period, as distinct from the average rate carried by the whole existing stock of borrowings.
The average is history and this is the forecast. When it sits above the average, the average will climb on its own as old paper matures and is replaced — without the company borrowing one extra rupee.
A position constructed so that its outcome depends on the relationship between two instruments rather than on the direction of the market.
Neutral only while both legs are held at equal rupee exposure. Size by share count instead and you have taken a directional bet by accident.
A company registered with the Reserve Bank whose principal business is lending or investing, but which is not a bank — it sits outside the payments system and, apart from a small separately authorised category, may not accept public deposits.
Every rupee it lends was first borrowed from somebody who priced it and can decline to renew. That single fact on the liability side reorganises every ratio on the asset side.
Operating profit as a percentage of revenue.
How much of each rupee of sales survives the cost of actually running the business.
A statutory or regulatory limit on the maximum price at which a good or service may be sold.
Where one applies, competitive strength stops being a pricing question — the brand cannot buy a rupee above the notified figure. Volume, mix and cost position are the only levers management still holds.
A measure of profit or loss expressed in multiples of the amount initially risked.
Makes trades of different sizes comparable and strips the emotion out of the rupee figure.
An RBI facility through which an individual can buy government securities directly, without an intermediary.
A genuine change: G-Secs used to be effectively institutional. For anyone wanting a risk-free rupee return over a defined period it is free and open, and most people still do not know it exists.
Return after tax and inflation — the change in what your money can actually buy.
A 7% FD in the 30% slab with 5.5% inflation returns about −0.6%. The rupees grew; the purchasing power did not.
Real Estate Investment Trust — a listed trust owning income-producing commercial property, required to distribute the large majority of its rental income to unit-holders.
Commercial property for a few thousand rupees, sellable in seconds. It is not safe the way a building feels safe: the unit price is market-driven, and rising rates hurt it twice.
Allocating so that each holding contributes equally to portfolio risk.
Equal rupees is measuring by spoons. This measures the heat.
Assets scaled by prescribed risk weights, so that a loan against a house and an unsecured personal loan of the same size do not consume the same capital.
What a lender lends against decides how much it can lend. A change to a weight is a decision taken elsewhere that can end a growth plan without a rupee moving anywhere.
Re-running a valuation across a range of growth and discount-rate assumptions to see how far the answer moves.
The output is a spread rather than a figure, and the spread is the honest answer. A DCF quoted to the rupee is a claim the model cannot support.
How much an instrument typically moves over a period.
It should set your position size. Equal rupees in a calm and a volatile stock is not equal risk.
Sizing positions so each contributes a similar amount of risk.
Hold risk per position constant and let the rupee value float — the opposite of equal amounts.