Share of YES Bank hit 10% upper circuit in early trade on Friday gaining for the second consecutive session, following reports that the stock will be upgraded to large-cap category from mid-cap by mutual fund industry body The Association of Mutual Funds in India (Amfi).
With only buyers to bid and no sellers to offer, YES Bank share price opened at the day's low of Rs 15.98 and later rose to Rs 17.33, rising 9.96% against the last close of Rs 15.76. Outperforming the Nifty Bank, the stock has given 11.81% returns in the last 2 days of consecutive gains.
YES Bank including four other firms- Adani Enterprises, PI Industries, Hindustan Aeronautics and Jubilant Food-Works - have a high probability of being included in the large-cap category from the midcap category as part of the half-yearly market-cap categorisation by mutual fund industry body AMFI. As per a report by ICICI Securities (I-Sec), there is a high probability of the first four and a low probability for Jubilant FoodWorks to get upgraded to large-cap stock.
This was on the back of changes in investment rules for multi-cap funds ordered by the Securities and Exchange Board of India (SEBI). The SEBI circular on asset allocation of multi-cap funds has mandated that a minimum 25% of total assets have to be allocated towards large-, mid- and small- caps each. The fresh list by AMFI is expected to be released by January 5, according to brokerages.
In the last week, the stock has risen 12.6%. YES Bank stock has resumed investors' participation, led by buying sentiment in the private banking index and broader indices Sensex and Nifty, that have been hitting new record highs.
It has risen over 40% in just a month, following the news of the bank's inclusion in the MSCI India Index. Inclusion in the MSCI Global Standard Index was bullish for the stock as this could attract fresh inflows of capital from overseas into the private lender.
Meanwhile, the stock of the private sector lender has fallen 63% since the beginning of the year and over 69% in one year. YES Bank stock is trading higher than 5, 20, 50 and 100-day moving averages but lower than 200-day moving averages.
The stock also gained investors' participation earlier, after rating firm CARE Ratings upgraded the lender's rating on debt instruments with a stable outlook on November 9, 2020.
In another update, YES Bank had earlier said the loan repayments performance by its retail and small business borrowers has been better than expected, and only Rs 300 crore of the Rs 60,000-crore book has applied for the COVID-19-related loan restructuring scheme.
The bank is targeting to increase the share of the retail and micro, small and medium enterprises (MSMEs) advances to 60% of the book by the end of the calendar year 2023 as against the present level of 44%.
The stock of the troubled lender touched a 52-week high of Rs 87.95 and a 52-week low of Rs 5.65. The market capitalisation of the lender rose to Rs 42,919.05 crore today.
As per a report published by Invezz.com, the stock was most sought after among Indian investors, clocking in 90,000 online searches in a month. That means, the two-digit stock has been searched over 3 times more than Microsoft, which stands at 26,600 average online monthly search volume.