Shares of YES Bank continued their losing momentum for the third straight session on Wednesday, hitting five-year low of Rs 65.30 on the Bombay Stock Exchange, as investors remained wary over the bank’s exposure to CG Power and Industrial Solutions which has been hit by financial fraud. The private lender’s stock was trading at lowest level since March, 2014.
Yes Bank owns 12.8 per cent stake in CG Power and Industrial Solutions as of June 2019.
In the last three trading sessions, YES Bank share price has fallen as much as 17.45 per cent on the BSE. Since the beginning of the financial year 2019-20, YES Bank share price has plunged 75 per cent as compared to 3.5 per cent decline in the Indian benchmark BSE Sensex.
Extending its previous session losses, YES Bank share price declined as much as 8.35 per cent to hit a 5-year low of Rs 65.30 after opening flat at Rs 71.20. It was the worst hit among front-line stocks on the BSE.
The stock also saw spurt in volume trade as 121.56 lakh shares changed hands over the counter as compared to two-week average volume of 110.75 lakh shares on the BSE.
In a similar trend, stock of YES Bank fell as much as 7.51 per cent to hit a record low of Rs 65.85 on the National Stock Exchange.
“Yes Bank stock has been falling down and forming lower highs – lower lows on weekly scale. It is trading at 5 years lows and every small bounce is being sold with sustained selling pressure in the counter. It has recently broken weekly support of 79 zones and that is likely to act as a hurdle to drag it towards 60 levels,” Mint quoted analyst at Motilal Oswal Financial Services as saying this.
Meanwhile, CG Power and Industrial Solutions shares hit 20 per cent lower circuit for the second consecutive session after the board of Gautam Thapar-promoted firm said it would restate accounts after discovering significant accounting irregularities and governance lapses. CG Power share price was stuck in lower circuit of 20 per cent to Rs 11.80 in early trade on BSE. CG Power share price closed 20 per cent lower at Rs 14.75 in trade yesterday.
According to a Business Standard report, the ministry of corporate affairs has ordered a probe into the affairs of the company. The probe was ordered after auditors of the firm resigned a few months ago.
[“source=businesstoday”]