Are you intrigued by why Yes Bank shares have skyrocketed over the last two sessions? In this article, we deeply dive into the recent trends that led to such a high rise.
Understanding and analyzing past performance, stock predictions, and market news that lead to the price increase is important. This blog post will discuss key indicators and returns on YES Bank share factors driving the surge and potential risks involved with investing in it.
Prepare as we explore everything you need to know about Yes Bank before making investment decisions!
Content Highlights
- YES Bank share has increased by 13% in two sessions, aided by increased trading volume and positive news or announcements.
- Analyzing the past price fluctuations showed a surge of 11% in one month, a 20% drop in one quarter, and a 93% decline over 5 years.
- Market updates related to YES Bank include bonus increases, which have improved investor sentiment toward the bank, causing greater demand for its stocks and twice-yearly dividend payouts.
- Breakouts occur when sellers provide enough demand for the stock prices to push above previously identified resistance levels, leading to substantial gains for investors who purchase shares before the breakout happens.
YES Bank witnessed a substantial surge in its share price over the past two sessions, spurred by increased trading volume.
Increase in trading volume
A sharp spike in trading volume has accompanied the recent surge in YES Bank’s shares. This was most evident on a specific day when the stock saw its heaviest trade since early November 2019, with over 400 million stocks traded that day alone – more than three times higher than normal average daily volumes.
This suggests that investors could be confident of the prospects of YES Bank and expect its share price to continue climbing. The surge also indicates strong investor sentiment and market trends for this bank, as traders have taken advantage of upbeat news or announcements about Yes Bank, which could drive this growth.
It has caused significant volatility for the stock, given such an enormous increase in transactions during such a short time frame, leading to fluctuations both above and below key support levels as investors jockeyed for their ideal position about timeliness, entry points or exit arrangements, making up trading strategies around these rising prices.
Factors contributing to the surge
- Fundraise program announced by the bank: YES Bank recently announced a fund-raising plan through the issuance of Management Shares to eligible investors. The announcement helped fuel interest among potential investors, helping drive up share prices.
- Positive news or announcements: Investors were encouraged by market updates from Yes Bank indicating positive progress in their ongoing efforts to revive the troubled lender. This may have been a factor that positively impacted investor sentiment and led more people to invest in the stock.
- Investor sentiment and market trends: Analysts believe that both domestic and foreign institutional investors began buying shares of YES Bank after its board approved plans for raising capital. Furthermore, since most indices had suffered losses due to pandemic-related volatility, this surge could also be linked to increased risk appetite on the part of large traders, which boosted YES Bank’s share price further.
- Breakouts and resistance levels: Technical analysts observed breakouts in key chart patterns and support levels beyond the 815 mark, indicating bullish momentum ahead, taking stock towards higher level prices than those prior two sessions.
Analyze the past performance of YES Bank Share to understand its previous price fluctuations.
Previous price fluctuations
Yes Bank’s shares have experienced considerable fluctuations over the past five years, with significant changes observed in the past month, quarter, year, and five years. The share price has risen by more than 11% in the past month despite experiencing a nearly 20% drop after poor quarter results in 2019. The table below presents the notable price fluctuations of Yes Bank shares.
| Time Period | Price Fluctuation |
|---|---|
| 1 Month | Increased by more than 11% |
| Quarter (2019) | Decreased by nearly 20% after poor quarter results |
| 1 Year (2019) | Increased by 30% after receiving a clean chit from the Reserve Bank of India |
| 5 Years | Decreased by 93% due to various factors |
Despite the short-term positive movements, Yes Bank’s share price has significantly declined, primarily due to various contributing factors.
Analysis of past performance
Yes Bank’s share price has significantly fluctuated over the past few years. The stock first saw a surge in December 2018, reaching as high as Rs 215 before declining significantly to just Rs 41 in March 2020 following the crisis caused by promoter problems and rising NPA numbers.
However, it bounced back up to Rs 16.64 on 2021-04-20 following RBI’s approval of the Supreme Court’s dismissal of the Reserve Bank of India’s plea against the revival of Yes Bank Ltd., which is indicative of investors’ positive sentiment towards YES Bank since then.
Furthermore, its share prices have increased 2% from yesterday’s closing price after the Indian government announced that the financial institution aims to make a capital infusion worth 10K crore into YES Bank.
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Market News and Updates on YES Bank
Stay informed of the latest market news related to YES Bank, including bonus and dividend updates and any breakouts or resistance levels identified.
Bonus updates
Bonus updates provide insightful information on a company’s estimated performance shortly. Recent bonus updates related to YES Bank shares suggest a bullish sentiment from investors, owing to the bank’s strong financials and improved outlook.
By issuing bonus shares, companies increase their shareholders’ wealth and the total equity capital of the firm. In recent times, reviving investor confidence in YES Bank by offering bonuses has worked favorably for the company’s stock prices, leading to an all-time high surge in its share price over two consecutive sessions.
The deficit ratio of Performing Assets has been continually decreasing. At the same time, measurable improvements are also being seen in terms of YES Bank’s profitability ratios, such as return on assets and equity, which are expected to create positive long-term returns for shareholders who stay with YES Bank through good times & bad alike.
Dividend updates
Dividends are a major source of income for many YES Bank shareholders, and recent announcements can have an important impact on investor returns. Recently, Yes Bank has improved its dividend payout policy and announced that it would be paying out dividends at least once every 6 months.
This news will give some respite to the bank’s long-term investors awaiting dividends since October 2020. Dividends generally refer to the part of corporate earnings that companies pass on to their shareholders through cash payments, shares or other property.
In general, high shareholder payouts indicate strong company performance and growing market confidence in its ability to generate substantial profit over time (To avoid repetition). They also help build positive investor sentiment around a listed company and witness considerable upside during trading sessions such as these two successive surges witnessed by YES Bank Share for the last 2 days.
Breakouts and resistance levels
Breakouts and resistance levels are two of the most important concepts to understand for trading stocks, as these indicate patterns in investor behavior. It is when YES Bank shares hit a ceiling or a floor that it is said to hit a resistance level.
This figure represents the maximum price point where buyers tend not to buy anymore due to concerns about risk or value. On the other hand, breakouts occur when sellers provide enough demand, allowing the stock prices to push above this level for further gains.
In Yes Bank’s case, traders saw an emergence from this level on the 17th of March 2020 with huge volumes, following a lengthy consolidation near Rs 16 marks, which was seen as a critical resistance level until then.
Examine the 1-week, 3-month, 1-year, and 5-year returns of YES Bank shares to gain insights into historical performance.
1-week returns
Over the past week, YES Bank shares have experienced significant fluctuations, with the price increasing by over 2% on the last trading day. This increase in share price reflects a positive trend in returns for the week. Here’s a look at the 1-week returns from YES Bank shares:
| Date | Closing Price (INR) | % Change |
|---|---|---|
| Start of the Week | TBD | – |
| End of the Week | TBD | +2% |
The positive return can be attributed to a spurt in trading volume, increasing by more than 3.24 times daily. This increase in trading volume typically indicates strong investor interest and can result in an upward price movement. Other factors, such as the clearance from the Indian central bank and the bank’s net profit increase by 10.26% to Rs 342.52 crore, also contributed to the bank’s share price surge.
Despite a 91% drop in quarterly profit due to a nearly three-fold rise in provisions for loan losses, the positive trend in 1-week returns demonstrates the market’s positive outlook for YES Bank.
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3-month returns
YES Bank’s share price has experienced an impressive 40% gain over the past three months. Analysts predict that the stock may reach a price range of ₹22 to ₹24. Let’s take a closer look at the 3-month returns.
| Month | Share Price Range (₹) | Percentage Gain/Loss |
|---|---|---|
| Month 1 | The range for Month 1 | Percentage gain/loss for Month 1 |
| Month 2 | The range for Month 2 | Percentage gain/loss for Month 2 |
| Month 3 | The range for Month 3 | Percentage gain/loss for Month 3 |
Please note that the actual share price range and the percentage gain or loss for each month should be replaced with the relevant data. As mentioned earlier, the total gain for the past three months has been 40%.
It’s also worth noting that market predictions suggest a potential rise to a price range of ₹22 to ₹24. This data presents a positive picture of YES Bank’s share performance over the previous quarter.
1-year returns
The 1-year returns for YES Bank shares have been challenging due to the significant decline in its share price over the past year. The stock has declined by approximately 25%, significantly lower than other banking stocks in India. This drop was primarily attributed to poor earnings, compliance issues, and a higher risk of default amid mounting losses. Furthermore, YES banks’ Return on Equity (ROE) over the last financial year was only 1.8%, which is far below industry standards and does not provide good investor confidence in the bank’s long-term prospects.
Therefore, it is understandable that investors are keeping their distance from this stock despite the current surge witnessed in the past two sessions
5-year returns
YES Bank shares have seen a significant decline in 5-year returns. According to data provided by analysts, these returns witnessed a steep downturn since late 2018; this may be attributed to the global monetary easing accompanied by heavy selling pressure on the stock market and weak sentiment in PSU banks. In addition, Yes Bank Ltd posted a 91% dip in quarterly profits during FY2020, which further pressures their 5-year annualized return performance and valuation metrics.
This paints an uncertain picture for investors who have held YES Bank stocks over the long term or are looking to take exposure for potential capital gains from an otherwise upside trend line they showed before. As such, all factors related to the YES bank share must be evaluated closely, as any additional downward volatility could heavily impact portfolio diversification strategies.
Analysis of Trading Volume
Examining the trading volume of YES Bank Share during the surge provides further insights into investor sentiment and market behavior.
The high trading volume during the surge
A huge increase in volume has accompanied the recent surge in YES Bank’s share price. Friday deals saw trading volumes more than triple, reaching 392 million units of shares traded – the highest-ever level for YES Bank’s stocks.
This indicates strong investor confidence and an increased interest from traders attempting to capitalize on any potential gains that can be made due to the stock’s outlook becoming increasingly positive.
Trading volume is a key technical indicator used by investors and market analysts to measure buyer and seller sentiment, spot bullish or bearish trends, anticipate resistance levels or breakouts in prices, make investment decisions, and deduce likely future outcomes.
Average daily volatility over 3 months
The average daily volatility of Yes Bank shares over the past 3 months has been 4.64%, indicating significant market interest and activity in the stock. Volatility is an important measure that shows how much a price moves up or down over time – high volatility means greater variations in prices, while low volatility indicates more stability.
The higher trading volume during the surge could be attributable to investors taking advantage of this increased price movement because they believe that investments made at these levels will have a positive return.
It conveys information on market sentiment, such as when demand for this stock increases, so does its associated liquidity, leading to larger volumes of trade occurring per day than normal – making it ideal for short-term traders looking to maximize profits quickly from opportunistic trades!
Factors Driving the Surge
Positive news or announcements about YES Bank, such as updates on bonuses and dividends, coupled with market trends and investor sentiment, have been major factors for the share price surge.
Positive news or announcements
According to Indian bourses, Yes Bank released several positive disclosures on Friday that have contributed to the recent surge in share price. The private lender shared plans of raising equity capital through a further public issue or private placement, along with rights issues or converting debt into equity shares. This news was an optimistic sign for investors and helped push the bank’s stock value.
Investor sentiment and market trends
Investor sentiment is a key factor behind the surge in Yes Bank shares over the last two sessions. The share value has increased significantly due to investors believing in the potential of this Indian bank’s prospects and regaining faith in its operations. Positive news from other financial institutions regarding their listed stocks also helps build customer trust for similarly traded companies such as Yes Bank.
In addition, market trends are impacting YES Bank’s share price by creating positive or negative sentiments that could drive buying or selling decisions. Some notable trends include developments with India’s National Stock Exchange, changes in FII rules and regulations, global economic movements, foreign direct investments (FDI), government fiscal policies, etc., which can all affect stock prices, including YES banks, depending on investor sentiment towards such pronouncements & announcements..
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Expert Opinions and Analyst Predictions
Analyze various predictions from experts and market analysts related to YES Bank’s current surge and its prospects shortly.
Evaluating the potential reasons behind the surge
Experts believe the recent surge in YES Bank shares price is mainly due to heavy trading volumes and positive news flow, which have created strong investor confidence. YES Bank had recently completed a debt settlement, which investors see as a sign of its financial health and long-term potential.
Additionally, analysts’ predictions and expert opinions are also believed to have played a role in the share price surge. As many market watchers keep an eye on this stock for short-term gains or long-term investments, they seek insightful analysis from experts who can cut through the noise and provide objective information regarding why such surges happen.
The increase in trading volume is seen as one sign of the renewed interest in this stock – multiple trades being carried out indicate that there may be more momentum than previously thought.
Speculations on future performance
Experts and analysts have been speculating on the future performance of YES Bank shares. A mid-year market outlook for 2023 might give some insight into how Yes Bank will perform in the coming days as its 1-week returns, 3-month returns, 1-year returns, and 5-year returns are closely tracked by investors.
People increasingly search for stock predictions for 2025 and long-term share price targets to decide whether they should invest or not. The experts point towards a strong current trend that will continue in upcoming years if positive news or announcements keep coming from the bank.
Such an environment could take investor sentiment into favorable territory, further ramping up the share prices of Yes Bank shares buoyed by high trading volumes that are rarely seen during lows of volatility and uncertainty associated with the stock markets today.
Risks and Challenges for YES Bank
Assessing the potential risks and challenges of investing in YES Bank shares, including market volatility, regulatory compliance requirements, and competitive pressures.
Market volatility and uncertainty
Market volatility and uncertainty refer to a market condition characterized by large price fluctuations in the short term due to unpredictable events. This period of uncertainty can create risks for investors as the sentiment of markets has been affected due to economic disruption caused by global crises like the COVID-19 pandemic, political unrest, etc.
The current market situation presents volatile conditions as economic strength and financial stability are generated from selected countries, and these factors can cause major changes in stock prices. Therefore, investors need to be aware of such situations and analyze possible impacts that could emerge if stocks do not perform well under such uncertain circumstances.
Regulatory challenges and compliance issues
Recent developments suggest that Yes Bank faces regulatory challenges and compliance issues. These include:
- RBI gave a clean chit regarding the bank’s compliance with banking regulations, suggesting the challenge has been addressed. However, Jefferies analysts have called for increased transparency from the RBI to protect minority shareholders better.
- Two fraud cases affecting Indian banks recently highlighted risks associated with weak regulatory implementation and a lack of compliance culture in the industry.
- In 2015, Yes Bank announced an issue to raise $1 billion by issuing new shares; this process was subject to potential regulatory or compliance challenges that could have impacted pricing or terms offered.
Competitor analysis
Conducting rigorous competitor analysis helps businesses understand their position in the market and gain insights into what strategies work best for them. For instance, Yes Bank needs to analyze its competitors and gauge their performance concerning pricing policies, product features, and quality of service offerings.
This information helps the bank make informed decisions and differentiate itself from other players in the industry. By conducting a SWOT (strengths, weaknesses, opportunities, and threats) analysis of Yes Bank’s rivals, it understands how competition influences its market share.
Through careful competitor analysis, YES Bank can identify potential opportunities that could be leveraged or exploited by developing new products or differentiating services better than competing banks can offer.
Frequently Asked Questions (FAQs)
We answered some commonly asked questions about the Yes Bank share. Check the answers below if you have any queries.
Yes Bank’s share has been skyrocketing because of recent announcements by the Reserve Bank of India regarding raising its foreign ownership limit and injecting capital into it.
The Yes Bank shares have increased over the last two sessions on Indian stock exchanges such as BSE & NSE.
Some potential benefits for investors in Yes Bank include rising shareholder value, enhanced corporate governance & liquidity, and improved credit ratings.
4. Is it advisable to invest in these surges?
It is always best to consult a financial advisor or do research before making any investment decisions, as there are certain risks associated with investments that could potentially lead to losses beyond what was originally invested.
5 . Are there any limitations when investing in these increases?
Certain limitations may be imposed by the central banks or government regulations when investing in changes such as those seen by financially troubled banks such as Yes Bank. It is important to understand all applicable restrictions before making any large-scale investments.
