YES Bank shares were trading in the green in Friday's opening trade after closing lower yesterday, amid heavy buying activity in banking stocks. This was led by a rally in broader benchmark indices Sensex and Nifty, which traded near record highs.
YES Bank share price today opened at Rs 14.57 today and later rose 1.05% to the day's high of Rs 14.42 on BSE. The stock also hit the day's low of Rs 14.11, against the earlier close of Rs 14.27.
YES Bank share has delivered 11% returns to its investors in one month. However, the stock of the private sector lender has fallen over 1% in one week and 69% since the beginning of the year. YES Bank stock is trading higher than 20, and 50-day moving averages but lower than 5, 100, and 200-day moving averages. Market capitalisation of the lender stood at Rs 36,003 crore today.
Yesterday, YES Bank share price closed at Rs 14.27, reversing from 10 days of consecutive gains. Share of the private lender that have traded in single digits this year hit a 52-week high of Rs 87.95 and a 52-week low of Rs 5.55.
There has been no bulk or block deal in the stock in the last 1 week. In terms of shareholding, domestic investors have decreased holdings in the lender by 7.43% on Sept 20.
Meanwhile, most brokerages have given a sell rating to the stock. Recently, BNP Paribas, as well as Geojit Financial Services, also assigned a 'reduce' rating to the YES Bank stock. As per Kotak Institutional Equities estimates, YES Bank has seen a sequential increase in deposits. However, the brokerage has given a 'sell' rating to the troubled lender, at a target price of Rs 15, with a fair value of Rs 11.
The stock has been on a bullish trajectory amid rising broader benchmarks Sensex and Nifty that have been hitting lifetime highs every day, fuelled by a rally in banking and financial stocks.
The stock also saw high buying activity following news of YES Bank's inclusion in the MSCI India Index. This helped the stock gain momentum as inclusion in the MSCI Global Standard Index, widely used by international fund houses for benchmarking global equities portfolios, could attract fresh inflows of capital from overseas into the private lender. All changes in constituents for the MSCI global standard indices will be implemented at the close of November 30, 2020.
The lender reported its June-Sept quarter earnings in the first week of November. It posted a net profit of Rs 129.37 crore for the September quarter compared with a Rs 600.08-crore loss posted in the corresponding period last year. On a quarter-on-quarter (QoQ) basis, profit jumped 183% against Rs 45.44 crore in Q1 of the current fiscal. Asset quality improved amid a decline in provisions during the September quarter of the current fiscal.
Sequentially, YES Bank's net interest income (NII) rose 3.4% to Rs 1,973 crore in Q2 from Rs 1,908 crore in the previous quarter. On a yearly basis, NII was down by 9.7% from Rs 2,186 crore.