SBI boost for Yes Bank! Share price rockets over 29 pct!

Yes Bank share price continues to rally for the second straight trading session. It has scaled up by over 28 per cent in the intraday session. According to stock market experts, this rise in Yes Bank shares is mainly due to the investors' sentiment turning positive after the State Bank of India (SBI) announcement to buy 49 per cent shares of the fourth largest private bank in India. On Monday, Yes Bank share price had escalated 31.17 per cent and closed at Rs 21.25 per share levels. On Friday, Yes Bank shares had crashed around 59 per cent and at one point of time, it had gone below Rs 10 per stock levels.

Speaking on the Yes Bank shares; Chandan Taparia, Derivative & Technical Analyst at Motilal Oswal said, "This rise in Yes Bank is due to the SBI announcement to buy 49 per cent shares of the Yes Bank that has changed the mood of investors from negative to positive. However, I will still advise stock market investors to avoid taking any fresh position in Yes Bank share and those who are holding this stock should offload their shareholdings." 

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State Bank of India (SBI) had announced on Saturday that it will pick up 49 per cent stake in Yes Bank for Rs 2,450 crore.

Standing in sync with Taparia's views on Yes Bank shares, Prakash Pandey, MD & CEO at Plutus Advisors said, "My suggestion for the stock market investors is to avoid taking any fresh trade. Those who have Yes Bank shares in their Demat Account should offload their shareholding as the outlook is still negative."

"Yes Bank has 255-crore shares of Rs 2 per share. SBI will be issued 245 crore shares at a price of Rs 10 per share for Rs 2,450 crore. This will be 49 per cent of the share capital of the reconstructed bank," the SBI had said in a statement.

Yes Bank has been struggling to raise capital amidst its dwindling financial health. It sought to raise $2 billion initially during this fiscal, which was then pruned to $1.2 billion as it could not rope in any investor.