Yes Bank hits record high on buzz of increase in weightage in MSCI index
Yes Bank rose 2.83% to Rs 1,288.15 at 14:52 IST on BSE on reports that the stock's weightage on the MSCI Global Standard Indexes was raised to 1.7% from 0.46% earlier.
Meanwhile, the BSE Sensex was up 302.17 points, or 1.08%, to 28,161.77.
On BSE, so far 1.85 lakh shares were traded in the counter, compared with average daily volume of 2.04 lakh shares in the past one quarter. The stock hit a high of Rs 1,291.60 so far during the day, which is a record high for the counter. The stock hit a low of Rs 1,254.30 so far during the day. The stock hit a 52-week low of Rs 590 on 24 August 2015. The stock had outperformed the market over the past 30 days till 11 August 2016, rising 9.17% compared with 0.16% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 31.98% as against Sensex's 9.30% rise.
The large-cap private sector bank has equity capital of Rs 421.22 crore. Face value per share is Rs 10.
According to reports, the increase in the stock's weightage on the MSCI Global Standard Indexes could translate into additional inflow of $224 million from foreign institutional investors in the Yes Bank counter. The changes in the MSCI index will reportedly take place as of the close of 31 August 2016.
Many global mutual funds passively track MSCI indices. Hence any addition or deletion of a stock or change in weightage of a stock in MSCI indices will require the fund tracking MSCI indices to make adjustment to its portfolio.
In June this year, the Reserve Bank of India (RBI) raised the ceiling on investment by foreign institutional investors to 74% of the private sector bank's paid up capital. RBI approval came after Yes Bank's board of directors and shareholders approved the proposal.
Yes Bank's net profit rose 32.8% to Rs 731.80 crore on 25.4% growth in operating income to Rs 4762.83 crore in Q1 June 2016 over Q1 June 2015.
Yes Bank is one of the leading private sector banks in India.
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