Hi, my name is Neeraj and you are watching market updates on the Groww channel.
We will talk about all updates which were impacting the market last week.
And many more important things which you should know as an investor.
Do watch this video till the end and tell us about each event that impacted your portfolio in the comment box.
So let's start today's market updates.
Friends, like the last week, the market movement is in a sideways direction.
That means neither up nor down.
Investors are again waiting for a bull run but according to a research report by Business Standard, the Indian market is more expensive than the rest of the global markets.
I will explain this in simple language.
But you need to make this video interactive, do comment on the questions I ask.
First, do you want to make this show interactive? Yes or No.
Please comment below.
If you haven't then like this video and watch till the end.
You can learn a lot from this video.
According to a research report by Business Standard, the Indian market is more expensive than the rest of the global markets.
What does it mean?
Have you heard the name of Ben Graham for this? Yes or No.
Warren Buffett is the investment guru of almost all investors.
Who is the Guru of our Guru?
Warren Buffett's investment guru is Ben Graham.
So comment and tell us which are the 2 books written by Ben Graham and if you have read any of these 2 books or not.
So Ben Graham said that the earnings yield of stocks in any country should be higher than the government bond yield of the time.
In other words, the earnings yield of stocks in any country should be higher than the government bond yield
What is the income yield?
In terms of earnings per share, it shows how much return we can get if we invest Rs 100 in a company.
In terms of the stock market, If you divide EPS of stock by stock price and multiply by 100.
Then you will get the stock's yield.
So as per EPS, how much do you earn investing Rs.100 in stock.
Same way, bonds also have yield.
What are bonds?
Bonds are a type of debt instruments
If I need money then I have 2-3 options to borrow money.
If I take a loan, I will buy bonds and will have to pay a fixed rate of interest on it.
The government issues bonds and also private companies can too from people
In the stock market, the stocks are riskier than the bonds.
If the stock market is riskier and the yield is less,
So make me meet that person who wants to invest here and take more risk earning less yield.
Who is that person?
At this point, there is a big game player.
What is that game?
Indian government bond yield is more than the Indian stock market.
The difference is quite much compared to other countries.
On your screen, you can see the difference.
What does it mean?
People are finding the Indian market liberative and expecting growth.
Expecting yield to increase as people in India are bullish.
Let's talk about the news that we are waiting for which impacted the stock market.
What is that news? RBI
I hope you have heard about it, it's the Reserve bank of India.
RBI has increased the repo rate by 50 basis points.
50 basis points mean increase by 0.5%
What is its implication?
First, let's understand what is repo rate.
As you take home loans, car loans, etc from banks, but where does this money come from?
It comes from RBI.
Repo rate in simple language is the rate at which RBI gives loans to other banks.
It is a matter of fact that if it is expensive for banks to take loans, then loans will be expensive for them too.
So home loans, car loans, etc all will become expensive.
We saw this result on 10th June.
There was a sharp fall in the share price of banks and NBFCs on 10th June as you can see on your screen.
Here the most important to note is the PNB Housing Finance.
This week has been sweet and sour for the investors of PNB Housing Finance. Why is that so?
The board of Punjab National Bank approved an investment of 500 crores in PNB Housing Finance,
for which the stock of PNB Housing Finance increased by more than 20% as a chance for an increase in sales and profit-making for it will increase.
Yes, you heard it right, 20%.
This was a sweet experience.
What was the sour time?
But on June 10, like other banks and NBFCs, the company's share price fell by 7%.
Few investors are looking seriously at a few sectors.
One amongst them is the renewable energy sector.
In FY22 there was an investment of $14.5 billion in the sector which was 125% higher than the previous year.
Are you listening?
The experience of the experts shows the commitment of corporations and financial institutions toward net-zero carbon emissions.
So comment and tell us 1 international and Indian plyer who is targeting zero net emission of carbon.
This month there was quite a discussion on credit cards and UPI.
You go to a mall and want to buy iPhone 13 pro max using a credit card
But your credit card is left at home and you cant do payment via credit card, oh my god.
What will you do?
You don't have to get scared with all these.
We are bringing up a technology to connect credit card with upi.
You will leave your credit card at home and still be able to pay through credit card from your favorite UPI app.
This week, RBI has given permission to link credit card with UPI.
Hold your horses! Dont get too emotional.
At present, only RuPay credit card holders will take advantage of the service
So this was this week's market updates.
I hope you enjoyed this video.
Do comment and tell us as to which news impacted your portfilio the most.
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With these videos, you will get information and get to learn everytime.
With this, Thank you guys, stay connected, stay safe, Jai Hind.
Seekhna shuru toh Jeetna shuru.
All the best, take care.