YES Bank shares were trading 2.4% higher in Monday's opening trade, amid heavy buying activity, led by a rally in broader benchmark indices Sensex and Nifty that hit fresh record highs.
YES Bank share price today opened at Rs 14.65 today and later rose 2.4% to the day's high of Rs 14.90 on BSE. The stock also hit the day's low of Rs 14.51, as against the earlier close of Rs 14.54 on Friday.
YES Bank shares have given almost 3% returns to investors in the last 2 days. In the last one month period, YES Bank stock rose for 11 days and declined for 7 days, taking the returns to 8.31% for the period. During the same period, Sensex has gained 8.2%, while the banking sector has risen almost 19%.
The stock of the private sector lender has although, fallen 68% since the beginning of the year and 77% in one year. YES Bank stock is trading higher than 5, 20, and 50-day moving averages but lower than 100, and 200-day moving averages. The market capitalisation of the lender rose to Rs 36,605 crore today.Shares 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.
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 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 rising amid buoyancy in broader benchmarks Sensex and Nifty that are hitting fresh lifetime highs every day, pushed by a strong rally in most 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 had 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.