Yes Bank Ltd share price skyrockets over 22% today; Here is what investors should do
Yes Bank Ltd share price has skyrocketed more than 22 per cent in the intraday trade till 11.50 AM on Wednesday but stock market experts are still negative on the banking stock.
Yes Bank Ltd shares have been hitting the headlines for a long time now. Today, Yes Bank Ltd share price was again the talk of the town as it has jumped over 22 per cent in the intraday trade till 11.50 AM on Wednesday. However, on Monday, the banking scrip slipped more than 20 per cent and major reason for such a huge jump was mainly blamed on its bad exposure to companies like DHFL, Indiabulls Real Estate, etc. However, the Yes Bank officials came forward and blamed the forced selling of 10 crore Yes Bank shares worth 3.92 per cent of the Yes Bank's equity share capital. This stock sale was triggered by an invocation of a pledge on the equity shares of a large stakeholder.
With negative news hitting the headlines, Yes Bank Ltd released a press statement keeping the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in loop saying, "YES Bank's share price observed a material drop on October 01, 2019. This fall was primarily on account of the forced sale of 10 Crores equity shares (3.92 per cent of the Bank's equity share capital) triggered by an invocation of pledge on the equity shares of a large stakeholder. The relevant disclosure made under Regulation 29(2) of SEBI Regulations, 2011 is enclosed herewith for ease of reference."
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However, the stock market experts are still negative about the banking counter. Chandan Taparia, Research Analyst at Motilal Oswal said, "The rise in Yes Bank share price is after the banking official statement regarding the forced selling of the 10 crore shares. However, it doesn't mean people should start investing in the stock. In fact, I would suggest investors exit on every rise as the counter is still weak."
On Monday, when the Yes Bank Ltd shares had crashed more than 20 per cent, the majority of the fundamental analysts had said that its investments in companies like DHFL, Indiabulls Real Estate, etc. are the major reason for its crisis. In fact, the Yes Bank officials are also in search of raising money to come out of the crisis that has hit the bank.
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