leverageLeverage magnifies changes in the owner's stake
Leverage uses borrowing to support an asset position larger than the owner's own contribution. If an asset worth ₹100 is funded with ₹60 of debt and ₹40 of equity, a ₹10 fall in asset value cuts equity to ₹30. That is a 25% equity loss from a 10% asset decline, before interest and costs.