Shares of Yes Bank on Friday extended their gains for the second straight session. The stock jumped 15.49 per cent to hit an intraday high -- also its 52-week high -- of Rs 20.50 compared to the previous close of Rs 17.75. The scrip eventually settled 10.99 per cent higher at Rs 19.70 today. A total of 12.80 crore shares changed hands on BSE, amounting to a turnover of Rs 253.05 crore. The lender's market capitalisation or m-cap stood at Rs 49,361.44 crore.
Analysts largely attributed today's upward move in the counter to the deal with two private equity (PE) firms and a "sharp upswing" in banking stocks.
AK Prabhakar, Head of Capital, IDBI Capital, said, "The rise in Yes Bank shares could be public sector banks' rub-off effect. The upward move could also be due to the deal with two PE funds."
Private equity majors Carlyle and Advent have got the Reserve Bank of India's (RBI's) nod to own up to 9.99 per cent in Yes Bank, the private sector lender said.
The two PE funds in July this year expressed an intent to pump in over Rs 8,000 crore in Yes Bank, subject to regulatory approvals. A regulatory nod is required to own over 5 per cent of a lender.
Pavitraa Shetty from Tips2trades, said, "A strong uptrend in Nifty Bank has led to a sharp upswing in a majority of the banking stocks including Yes Bank. Yes Bank has a stiff resistance at Rs 19.8 and investors should book profits at current levels and wait for a dip near Rs 15.8-16 to buy for targets of Rs 21-21.8 in the near term."
Anand James, Chief Market Strategist at Geojit Financial Services, said, "Today's rise has been accompanied by gigantic volumes matched only by similar rises in August as well as in April. Post both these occasions, the trend had retired into a sideways mode and did not muster the follow-up momentum usually associated with such price rise, backed with good volumes. The stock has made a breakaway move from recent consolidation. It is attempting to take down the 2020 peak."
He also opined that a target of Rs 30 in the next six months could be possible, with the downside marker placed at Rs 17, being the congestion support.
Hemali Dhame, Associate Vice-President Research, Kotak Securities Ltd, assigned a 'Sell' call on the stock and hoped "to see more visible improvement" on the earnings front. "Though, we do like the trajectory of the bank," Dhame added.
Manoj Dalmia, Founder and Director of Proficient Equities Private Ltd, said, "Yes Bank has seen huge buying volumes and investors can avoid buying at current levels. Investors can buy once it closes above Rs 21.60 with a long-term target of Rs 30."
Ravi Singhal, CEO, GCL, "The stock looks great at this price after a breakout above Rs 17. Keep adding for a target of Rs 35 with a stop loss of Rs 15."
Yes Bank's net profit for the September quarter slipped 32 per cent, on a yearly basis, to Rs 152.82 crore from Rs 225.5 crore, posted in the same quarter last year.
Meanwhile, Indian equity benchmarks settled on a lower note today, dragged by technology and PSU bank stocks.
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