YES Bank extends recovery; stock rises 21% in two sessions

Shares of YES Bank have risen for the second consecutive day, gaining over 10 per cent to Rs 223 levels on the National Stock Exchange (NSE) in intraday trade today, after the private bank said that it is fully prepared for the succession plan for its managing director and chief executive officer and will finalise two external experts for the search committee by October 7.

The stock has risen over 21 per cent in the past two sessions after it hit a 28-month low last week.

"Search & Selection Committee, assisted by a Global Leadership Advisory Firm, will evaluate both internal and external candidates and make suitable recommendations to the Board of Directors for onward submission to RBI.," the bank said in a regulatory filing on Monday.

YES Bank on Monday also released its unaudited financial results for the quarter to September. The bank registered a 41 per cent year-on-year rise in deposits at Rs 2.23 lakh crore in the second quarter (Q2FY19) while the CASA ratio grew 28.2 per cent YoY.

Gross non-performing assets stood at 1.35 per cent of gross advances compared with 1.82 per cent in the same quarter last year.

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YES Bank gains 6% ahead of board meeting today

Shares of YES Bank were up 6% at Rs 239 per share on the BSE in intra-day trade on Tuesday ahead of the board meeting to be held later in the day to decide the future course of action after the Reserve Bank of India (RBI) curtailed the term of its managing director (MD) and Chief Executive Officer (CEO) Rana Kapoor and asked the bank to look for a replacement by January 2019.
“Reserve Bank of India has vide letter dated September 17, 2018, intimated that Rana Kapoor may continue as the managing director (MD) & CEO till 31 January 2019, and the board of directors of the Bank are scheduled to meet on September 25, 2018 to decide on the future course of action,” YES Bank said on Wednesday, September 19, 2018, in a regulatory filing.

After the announcements, the stock of YES Bank had slipped 29% in past two trading days till Monday. It touched a 52-week low of Rs 210 on Friday in intra-day trade.

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YES Bank gets a ratings cut after RBI order on Rana Kapoor

Brokerages including Citigroup and IDFC Securities have slashed their ratings on YES Bank, citing weak business outlook. This follows the Reserve Bank of India’s direction to CEO Rana Kapoor to step down after January 31, rejecting the lender’s request to extend his tenure by three years.

Kapoor’s departure might make raising fresh capital, as well as growing deposits and fee income, harder for the Mumbai-based lender, the brokerages said.

Citigroup, in a note, said the premium attached to YES Bank’s shares for Kapoor “can go away”. The bank’s senior management is competent, but Kapoor played a significant role in building the bank, it added. The note added that YES Bank might have to defer its capital raising plans, which could slow down growth. The brokerage downgraded the stock to ‘sell’ from ‘buy’. It cut its price target by 39 per cent to Rs 270.
Domestic brokerage IDFC said in a note that Kapoor’s departure will lead to a slowdown in loan and fee growth, which could “lead to a sharp fall in valuations”.

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Stocks to watch: YES Bank, Jet Airways and Hotel Leelaventure

Global cues are likely to dominate investor sentiment on Friday. US equities hit a fresh record high on Thursday, boosted by gains in industrial companies on continued relief that fresh US and China tariffs were less damaging than feared. Asian stocks, too, rose in the early trade.

Here's a list of top stocks that may remain on investors' radar in today's session -

YES Bank: The stock is likely to remain in focus today as the RBI has curtailed the term of Yes Bank's founding CEO Rana Kapoor and asked the private sector lender to look for his replacement by January 2019. Brokerages such as IDFC Securities and Citi have downgraded the stock while Macquarie have maintained 'Outperform' rating.

Hotel Leelaventure: The cash-strapped company on Thursday said it had defaulted on payment of quarterly interest of Rs 21.2 million to LIC. Hotel Leelaventure, which currently has a debt of over Rs 36.62 billion, had issued secured redeemable NCDs on private placement basis, aggregating Rs 900 million to LIC in December 2008.

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Today's picks: Tata Steel to YES Bank, hot stocks to watch on Wednesday

Nifty
Current: 11,738 (fut: 11,757) Target: NA
Stop-long positions at 11,675.
Stop-short positions at 11,825.
Big moves could go till 11,625, 11,900. A long 11700p (19), long 11,800c (17) work gain if the index moves outside 11,664, 11,836 by Thursday.

Bank Nifty
Current: 28,269 (futures: 28,313)
Target: NA
Stop-long positions at 28,175. Stop-short positions at 28,450. Big moves could go till 27,950, 28,725. Profit booking seems a little more likely than a continuing uptrend.
Tata Steel
Current price: Rs 590
Target price: Rs 598
Keep a stop at Rs 585 and go long. Add to the position between Rs 596 and Rs 597. Book profits at Rs 598.

YES Bank
Current price: Rs 370
Target price: Rs 364
Keep a stop at Rs 374 and go short. Add to the position between Rs 365 and Rs 366. Book profits at Rs 364. Target prices, projected movements in terms of next session, unless otherwise stated 

YES Bank hits new high; rallies 15% in 9-days on SEBI nod to launch MF biz

Shares of YES Bank hit a new high of Rs 386 per share, rising 2% on the BSE, and moving higher for the ninth straight trading session after the bank said that it has received approval from capital markets regulator SEBI to start mutual fund business. The stock surpassed its previous high of Rs 385 recorded on July 12, 2018 in intra-day trade.
“This approval is subsequent to the Reserve Bank of India’s (RBI) approval granted to Yes Bank to sponsor a mutual fund followed by SEBI’s in-principle approval received subsequently,” the bank said in a statement on July 4, 2018.

In past nine trading sessions, YES Bank has rallied 15% as compared to 2% rise in the S&P BSE Sensex.

Meanwhile, Motilal Oswal Securities expect YES Bank’s loan growth to be significantly ahead of the system at 57% YoY on the back of refinancing opportunities and strong growth in retail banking.

Nifty outlook and top trading ideas from Prabhudas Lilladher for today

Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

NIFTY VIEW
Nifty has bounced back from the low of 10,420 making a higher bottom formation pattern in the daily chart but needs to confirm the continuation of the rally only after it breach the levels of 10,650 decisively.

BUY YES BANK
CMP: Rs 339.40
TARGET: Rs 370
STOP LOSS: Rs 325
The stock has given a short correction from the peak of 369 to bottom out at around 325 levels and taking support at the significant 200 DMA levels it has made the chart look attractive to anticipate a bounce from here on. With the positive bullish candle pattern formed in the daily chart and also with the RSI indicator showing a trend reversal to signal a buy, the stock is poised for further rise from here on and the risk reward ratio has become favourable. We recommend a buy in this stock for an upside target of 370 keeping a stop loss of 325.

BUY APOLLO TYRE
CMP: Rs 279.50
TARGET: Rs 300
STOP LOSS: Rs 269
The stock has been consolidating at around 274 levels and currently has produced a positive bullish candle pattern in the daily chart to signify strength and potential to rise further in the coming days. The stock has maintained above the 200 DMA moving average and has indicated a positive bias and with the RSI showing a trend reversal has indicated a buy signal. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 300 keeping the stop loss of 269.

Top stock recos: Buy YES Bank, Lupin & Castrol India

STOCK MARKET - Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

NIFTY VIEW :
Nifty has given a breakout above the previous peak in the daily chart where it was witnessing a strong resistance on several occasions and has signified a positive bias with the RSI in daily and weekly chart showing strong trend. We maintain the ongoing positive momentum in Nifty unless and until it breaks the level of 10380 on the lower end. However, the support for the week is seen at 10380 while resistance is seen at 10760.

BUY YES BANK
CMP : Rs 332.85    
TARGET : Rs 365  
STOP LOSS : Rs 316
The stock has given a breakout after a long consolidation period and has indicated a strong positive bias for further movement in the coming days. The RSI has indicated a steep rise and recently has made a trend reversal to signal a buy. Also it has moved above the 200 DMA to show strength and potential to gain further and with decent volume participation witnessed, we recommend a buy in this stock for an upside target of 365 keeping a stop loss of 316.

BUY LUPIN
CMP : Rs 900.15    
TARGET : Rs 975    
STOP LOSS : Rs 870
The stock has been hanging on around the 825-830 levels for some time and then a gradual rise was seen again to consolidate at around 875-885 levels and now a spurt has been indicated with a positive bias. The chart looks attractive for an upmove and the indicators are also favourable for a good rally. The volume has been picking up and we anticipate the stock to move upward till 970-980 levels. We recommend a buy in this stock for an upside target of 975 keeping a stop loss of 870.

YES Bank dips 10% on weak asset quality performance in Q2

STOCK MARKET - YES Bank dipped 10% to Rs 299 on the BSE in early morning trade after the private sector lender saw significant weakening of its asset quality in September 2017 quarter (Q2FY18).

The bank’s gross non-performing assets (GNPA) ratio rose to 1.82% in Q2FY18 from 0.97% in June quarter (Q1FY18), while Net NPA rose to 1.04% from 0.39% in previous quarter. It saw a rise in NPAs by Rs 6,355 crore as the Reserve Bank of India (RBI) asked it to restate bad loan figures for FY17.

However, Yes Bank posted a strong operating performance with a 25% year on year (YoY) rise in net profit at Rs 1,002 crore, backed by growth in net interest income and fees. Its net interest income (NII) grew by 33.5% YoY to Rs 1,885 crore driven by robust 34.9% YoY increase in advances and strong expansion 30 BPS YoY (flat sequentially) in net interest margin (NIM) which was at 3.70%.

While the business growth of Yes Bank continues to be enthusing, the brokerage firm Sharekhan believes that the markets and investors will be worried over the large divergence amount reported by the bank.

“Notwithstanding the fact that in past, the bank management have been fairly successful in ring-fencing, enforcing collaterals and effect recovery in GNPA assets, we believe, that the recent developments raise concerns which will weigh heavy on the stock performance in the near term,” the brokerage firm said in stock update.

At 09:45 AM; the stock was down 6.5% to Rs 310 on the BSE, as compared to 0.13% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 32.16 million shares changed hands on the BSE and NSE so far.

In past seven trading days, YES Bank has dipped 20% from Rs 373 on October 17, 2017, against 1.8% rise in the benchmark index.

Nifty outlook and top three trading ideas by Chandan Taparia of MOSL

Nifty Outlook and few trading ideas by Chandan Taparia, Derivatives and Technical Analyst at MOSL:
STOCK MARKET

IOC
Reco: BUY
Last Close: Rs 419
Stop Loss: Rs 409
Target: Rs 445
It has made multiple lows at Rs 403 in the last couple of days, which suggests sustained buying interest at this level. It made three outside up pattern which is a bullish sign. Price action sees a strong momentum and it is likely to witness more upside towards Rs 445. Thus, we recommend buying at current levels with a stop below Rs 409 for a rally towards Rs 445.

YES BANK
Reco: BUY
Last Close: Rs 1,778
Stop Loss: Rs 1,740
Target: 1,850
Major trend of the stock is positive and recent declines from Rs 1,860 to Rs 1,700 provides a fresh buying opportunity. It has been among the outperformer in last couple of months so a stability or a bounce back in index could start the fresh leg of rally.

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Nifty Bank's journey from 20K to 25K: YES Bank surges 100%, all PSUs in red

STOCK MARKET - Continuing the record breaking spree, Nifty Bank settled above 25,000-mark for the first time ever on Monday. In July itself, the index outperformed frontline indices by rallying over 8% as compared to a 5.8% rise in the Nifty50 index.

The index first hit the 20,000 mark on January 23, 2015 on a closing basis. It took the index 623 sessions or 30 months to cross the next 5000 points. In this 5000-point journey, private banks contributed the most to the index while all PSU banks were negative for the period.

While YES Bank, IndusInd Bank, HDFC Bank and FEderal Bank rose between 60%-107%, Bank of Baroda, Punjab National Bank and Canara Bank lost between 19%-25% in the period.

Among individual stocks, YES Bank was the top performer, surging over 100% since Jan 23, 2015. The bank recently reported a 32% rise in its net profit (y-o-y) to Rs 965 crore, helped by 44% growth in net interest income to Rs 1,809 crore. The lender’s board also approved a 5-for-1 stock split of equity shares. It gained nearly 25% for the month of July.

IndusInd Bank, which rose 91% for the period also reported stellar earnings for the quarter ending June 2017. The bank’s net profit rose 26% to Rs 836 crore as compared with Rs 661.38 crore in the year-ago quarter on healthy interest income as the bank bucked the industry norm to grow its advances book at a fast clip.

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YES Bank stock hits record high on 32% increase in Q1 net

STOCK MARKET - YES Bank surged 4.48 per cent to Rs 1,789.35 at 14:10 IST on BSE, with the stock extending Wednesday's rally triggered by a good Q1 result.

Meanwhile, the S&P BSE Sensex was up 157.78 points or 0.49 per cent at 32,540.24

On the BSE, 6.28 lakh shares were traded on the counter so far as against the average daily volumes of 2.47 lakh shares in the past quarter.

The stock hit a high of Rs 1,796.50 in intraday trade so far, which is a record high for the counter. The stock hit a low of Rs 1,741 so far during the day. The stock had hit a 52-week low of Rs 1,091.25 on 26 December 2016.

The large-cap bank has equity capital of Rs 457.64 crore. Face value per share is Rs 10.

YES Bank's net profit rose 31.93 per cent to Rs 965.52 crore on 21.48 per cent growth in total income to Rs 5,785.96 crore in the first quarter (Q) of the current financial year (FY) over Q1FY17. The result was announced during market hours on Wednesday when the stock gained 6.1 per cent to settle at Rs 1,712.55.

Meanwhile, YES Bank's board at its meeting held on Wednesday approved a 5-for-1 stock split of equity shares.

The bank's gross non-performing assets (NPAs) stood at Rs 1,364.38 crore as on June 30, 2017, as against Rs 2,018.56 crore as on March 31, 2017, and Rs 844.56 crore as on June 30, 2016.

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HDFC, YES Bank, HDFC Bank, Maruti Suzuki, Eicher Motors hit new highs

STOCK MARKET - Housing Development Finance Corporation (HDFC), YES Bank, HDFC Bank, IndusInd Bank, Maruti Suzuki India and Eicher Motors from the Nifty 50 index hit their respective new highs on the National Stock Exchange (NSE) on Thursday.

YES Bank surged 5% to Rs 1,797, extending its Wednesday’s 6% rally on NSE, after the bank’s gross non-performing assets (GNPAs) has come down by Rs 654 crore in absolute terms and 55 bps QoQ to 0.97% during April-June (Q1FY18) quarter.

“For five consecutive quarters the bank has been delivering loan growth above 30%, with growth in Q1FY18 coming in at 32%. Deposit growth also remained strong at 22.6%. With asset quality concerns easing and core operations remaining strong the earnings visibility of the bank has improved,” Angel Broking said in a note.

Meanwhile, the board of directors of the bank has approved stock split in the ratio of 5 for 1 i.e. sub-division of existing 1 equity share of face value of Rs 10 each fully paid up into 5 equity shares of Rs 2 each fully paid up.

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