Yes Bank shares heavily in morning trade today

Investors sold Yes Bank shares heavily in morning trade today. But this morning, Yes Bank shares rose 2.22% to hit a high of Rs 18.54 in intra-day trade.

Yes Bank News today

What are the results of Yes Bank quarter 4 2023

But after that the share price started falling to Rs.17.70. Yes Bank stock, which saw heavy selling pressure from morning highs, has since been pushed lower.

Stock market experts said that even if Yes Bank releases its quarterly results on Saturday, its share price will reverberate on Talal Street on Monday, so a decline in share prices is inevitable. While the bank's net profit and income have posted good numbers, the stock price has fallen is one to watch out for.

Yes Bank shares fell by around Rs 12 to Rs 13 and have been trading between Rs 14.50 and Rs 19 each for a long time, said Vaibhav Kaushik, research analyst at GCL Broking.

Therefore, it is better for long-term investors to take more risk and buy when they see declines in stocks, Kaushik said. Today, Yes Bank's share price is trading at Rs 17.25, down 0.86%.

Yes Bank has announced earnings for the first quarter of the financial year 2023-24. Net profit rose to Rs 342.52 crore in Q1FY24, compared to Rs 310.63 crore in last fiscal. On a QoQ basis the bank recorded Rs. 202.43 crore against a net profit of 69 per cent growth in net profit. However, it was Rs 1,072 crore in Q1FY23 and Rs. 1,196 crore and its declines to Rs 1,430 crore in Q1FY24.

Yes Bank News today

There are a few possible reasons why investors sold Yes Bank shares heavily in morning trade today.

End of lock-in period for private lenders. The three-year lock-in period for private lenders who invested in Yes Bank ended on July 22, 2023. This means that these lenders are now free to sell their shares, which could have put downward pressure on the stock price.

Weak quarterly results. Yes Bank reported a 45% drop in standalone net profit for the quarter ending March 31, 2023. This was due to higher provisioning for bad loans. The weak results could have also contributed to the selling pressure on the stock.

Overall market volatility. The broader market was also volatile today, which could have also led to some selling in Yes Bank shares.

It is difficult to say definitively why investors sold Yes Bank shares heavily today. However, the factors mentioned above could have played a role.

Here are some additional details 

about each of the reasons mentioned above:

End of lock-in period for private lenders. When Yes Bank was bailed out by the RBI in 2019, several private lenders were asked to invest in the bank. These lenders were subject to a three-year lock-in period, which meant that they could not sell their shares until July 22, 2023.

The end of the lock-in period means that these lenders are now free to sell their shares. This could have put downward pressure on the stock price, as some of these lenders may choose to sell their shares.

Weak quarterly results. Yes Bank reported a 45% drop in standalone net profit for the quarter ending March 31, 2023. This was due to higher provisioning for bad loans. The weak results could have also contributed to the selling pressure on the stock.

Yes Bank's loan book has been shrinking in recent quarters, and the bank has been facing increasing competition from other private lenders. This has led to higher levels of bad loans, which has weighed on the bank's profitability.

Overall market volatility. The broader market was also volatile today, which could have also led to some selling in Yes Bank shares.

The Indian stock market has been volatile in recent months, as investors have been concerned about the global economic outlook and rising interest rates. This volatility could have also led to some selling in Yes Bank shares.

It is important to note that the stock market is a cyclical market, and there will be periods of volatility. However, Yes Bank is a fundamentally sound bank, and it is likely that the stock price will recover in the long term.