Yes Bank shares extend gains for second day in a row

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Yes Bank shares extend gains for second day in a row

Shares of Yes Bank extended their gains for the second straight session on Friday. The stock went up as much as 14.93 per cent to hit a day high and also its 52 week high of Rs 20.40 against its previous close of Rs 17.75. A total of 616.23 lakh shares changed hands on the BSE, a turnover of Rs 120.47 crore. The market value of the lender was 49,987, according to the market cap. There were 86 crore.

Today's upward move was attributed to the deal with two private equity PE firms and a sharp upswing in banking stocks, according to analysts.

AK Prabhakar, head of capital, IDBI Capital said the rise in Yes Bank shares could be a public sector bank's rub-off effect. The deal with two PE funds could lead to an upward move. Also Read | HUL shares hit a 52 week high on the acquisition of stakes in OZiva and Wellbeing Nutrition.

Private equity majors Carlyle and Advent have got the Reserve Bank of India'sBank of India's Reserve Bank of India's RBI's approval to own up to 9.99 per cent of Yes Bank, the private sector lender said.

The two PE funds expressed an intent to pump in over 8,000 crore in Yes Bank in July this year, subject to regulatory approvals. A regulatory nod is required to own more than 5 per cent of a lender.

Pavitraa Shetty, from Tips 2 trades, said a sharp upswing in a majority of the banking stocks including Yes Bank has resulted from a strong uptrend in Nifty Bank. Yes Bank has a stiff resistance at 19.8 and investors should book profits at current levels and wait for a dip near 15.8 -- 16 to buy targets of Rs 21 -- 21.8 in the near term. The private lender's net profit for the month of September fell 32 per cent, to Rs 152.82 crore from Rs 225.5 crore in the same quarter last year, a decline of 32 per cent on a yearly basis.