Why Yes Bank share price is rising today — explained

Stock market today: Yes Bank">Yes Bank shares have been in uptrend since early morning deals. Yes Bank share price today opened with an upside gap and went on to hit an intraday high of ₹16.35 apiece on NSE, logging around 2 per cent rise within few minutes of stock market's opening bell today. According to stock market experts, Yes Bank shares are rising today due to fund raise programme announced by the private lender through issuance of debt securities. They said that stock has strong support placed at ₹13 apiece levels and in near term, Yes Bank share price may go up to ₹18 per share levels.

Speaking on the reason for Yes Bank share price rally during morning session on Monday, Saurabh Jain, Vice President — Research at SMC Global Securities said, “Yes Bank shares are rising today as the bank has declared ₹2,500 crore fund raise through issuance of debt securities. Yes Bank share price is reasonably priced today and hence due to this fundamental trigger, we are witnessing some buying interest in the scrip. But, this trigger is short lived and we might see profit booking at resistance levels.”

Expecting jump in Yes Bank shares in short term, Girish Sodani, Head of Equity Market at Swastika Investmart said, “Yes Bank's gross nonperforming loan (NPL) ratio declined to 2.2% YoY, Its loan loss coverage declined to 62% at the end of March 2023 from 71% a year ear1ier following the NPL sale. As talk about agency Moody’s noted that YES Bank's funding & liquidity also improved as its deposits grew. YES Bank's average liquidity coverage ratio rose to 119% for the March quarter from 115% in the year-ago quarter. It will surely impact a short period on Yes Bank stock but the same line of action will help the YES BANK stocks can see a new 52-week high.”

Yes Bank share price target

Advising 'buy on dips' strategy for short term, Anuj Gupta, Vice President — Research at IIFL Securities said, "Yes Bank share price today has strong support placed at ₹13 apiece levels and the stock has resistance placed at ₹18 per share levels. On chart pattern, the stock is looking positive with substantial rise in trade volume. Hence, Yes Bank shares are expected to scale higher and any dip should be seen as buying opportunity. So, those who have this stock in their portfolio are advised to hold the stock further."

Yes Bank news

Yes Bank informed Indian stock market exchanges last week about ₹2,500 crore fund raise in an exchange communication available on BSE citing, "The Board of Directors of the Bank in its meeting held on June 23, 2023, have, considered and approved draft Notice of the Annual General Meeting to be held on August 18, 2023, inter alia Borrowing/raising funds in Indian/foreign currency up to an amount of Rs. 2,500 Crores by issue of debt securities including but not limited to non-convertible debentures, bonds, Medium Term Note (MTN) etc. in terms of Section 42, 71 and other applicable provisions of the Companies Act, 2013 read with Rules thereunder, SEBI (Issue and Listing of Debt Securities) Regulations, 2008, the SEBI Listing Regulations and other applicable laws, if any, which is subject to necessary approvals from shareholders/ regulators, as applicable."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.