Why YES Bank shares surged nearly 5% in intraday trade

YES Bank share price jumped nearly 5 per cent in intraday trade on the Bombay Stock Exchange (BSE) on Tuesday after the private sector lender came out of Futures & Options ban today. YES Bank shares were excluded from Futures and Options (F&O) trading as open interest across exchanges had fallen below the market-wide position limit.

YES Bank share was recently prevented from trading in the futures segment after the aggregate open interest positions in its derivatives contract exceeded 95 per cent of the market-wide position limit. The open interest means all outstanding buy and sells positions in the security or futures, and options contracts.

Snapping previous session losses, YES Bank share price rose as much as 4.73 per cent to touch an intraday high of Rs 52 apiece on the BSE after opening higher at Rs 50.10 against the previous close level of Rs 49.65. In contrast, the BSE Sensex was trading 66 points, or 0.16 per cent, lower at 41,576.

Also Read: YES Bank share gains 11% in two days amid buzz lender likely to launch QIP soon

The mid-cap stock was trading 79 per cent higher than its 52 week low touched on October 1, 2019, and 80 per cent lower from its 52 week high of 285.90 hit on April 3, 2019.  

In a similar trend, YES Bank shares were trading 4.43 per cent higher at Rs 51.85 per cent on the National Stock Exchange (NSE). The scrip opened higher at Rs 50.15 and touched a day's high of Rs 52 apiece.

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On Monday, YES Bank shares tumbled over 3 per cent despite reports that European entities have expressed interest in investing up to $1 billion in the private sector lender.

Earlier in December, YES Bank in a filing to the bourses disclosed that its board was willing to favourably consider London-based Citax Holdings' $500 million offer. The bank had said the $1.2 billion binding offer submitted by Canadian industrialist Erwin Singh Braich continues to be under discussion.

Edited by Chitranjan Kumar