Shares of Yes Bank plunged 29 percent on Tuesday. Institutional investors lost nearly Rs 10,000 crore in value of their holdings, its first ever quarterly loss, leading to an erosion of Rs 16,000 crore in market capitalisation. The fall in the stock was its biggest-ever one-day decline.
The stock ended at Rs 168 after falling as much as 30.4% to a low of Rs 165.30 during the session as the bank’s quarterly loss, its exposure to the Reliance group companies, which have seen debt rating downgrades, and the slew of rating downgrades by brokerage on its own stock, led to panic selling.
On a closing basis, the stock ended at the lowest level since December 10 last year. Mutual funds saw Rs 1,500 crore worth of value erosion due to Tuesday’s fall while FIIs lost Rs 6,500 crore. The stock is down more than 50% over the last one year, despite the recovery seen in the stock price in the first three months of the year.
Read EquityPandit’s Nifty Bank Outlook for the Week