Street signs: YES Bank stock falls, CPSE ETF bet goes wrong, and more

CPSE ETF bet goes wrong for investors 

Investors in the latest tranche of the CPSE ETF (exchange-traded fund) are staring at losses of as much as 10 per cent. Eyeing listing day gains, several investors, including some large institutional ones, had invested in the sixth tranche of the ETF launched a month ago. However, these investors have been caught on the wrong foot, as the units were listed below the issue price and since then they have been on the downward slope amid weakness in the market. On all the previous five occasions, the CPSE ETF had made listing gains for investors. Market players say the losses could weigh on investors’ appetite for future disinvestment through this route.

YES Bank bites small investors

The sharp fall in shares of YES Bank has hit several small investors. Zerodha, the country’s largest retail broker, in a note has said nearly 30 per cent of its clients hold shares of the private sector lender. The brokerage says the stock has been the biggest wealth destructor, with nearly 200,000 investors sitting on unrealised losses of over 60 per cent. Market players say the trend would be more or less similar with other brokerages. “YES Bank is a component of both Nifty and Sensex. Besides direct investments, several investors have exposure to the stock through mutual funds, ETFs and pension funds. The fall has hit several investors,” said a broker. 

Windfall gains in Hathway, Den 

Investors who bet on cable operators Hathway Cable and Datacom, and Den Networks ahead of the annual general meeting (AGM) of Reliance Industries (RIL) have generated stellar returns. Shares of Hathway and Den have rallied 80 per cent and 60 per cent, respectively, in the past two weeks after RIL chairman Mukesh Ambani at the AGM said that Jio would soon start the fibre-to-home service that will allow subscribers access to fast internet. RIL has 51.3 per cent stake in Hathway and 66 per cent in Den. “The market is expecting huge revenue boost for these two companies as the broadband initiative will be rolled out through them,” said an analyst.