Indian equities are on a continuous upmove in the year 2017 buoyed by a couple of events ranging from upgrades by World Bank, Moody’s, government’s PSU bank recap boost etc. Domestic markets have been performing quite well among the major economies since the slump in last year which was observed right after the demonetisation exercise. The key benchmark indices Sensex and Nifty have zoomed about 25% since January 2017. The IPO (initial public offerings) market has also received a massive response from almost all investor classes as about Rs 65,000 crore have been raised through the public offers in 2017 so far.
While investors always look for more and more investment avenues, we bring you a large-cap bank stock to buy before it joins the elite Sensex index and you may gain up to 40%. The stock of India’s one of the emerging private sector lender Yes Bank had risen more than 30% in 2017. Yes Bank shares hit a lifetime high of Rs 383.25 and a 52-week low of Rs 218.25 in December 2016. This year Yes Bank had a passed a major corporate action in which the stock was split in a ratio of 1:5, following which the shares of Yes Bank advanced 28% to hit the record high of Rs 383.25 on 21 September from Rs 298.67 as on 3 July 2017, when the stock split plan was announced.
The research and brokerage firm Prabhudas Lilladher has given a ‘buy’ rating, with a target price of Rs 415 from the current market price of Rs 302 which implies an upside of 37.6%. “We believe, bank will continue to grow earnings at +30-31% CAGR in next 3 years, while there has been catching up in asset quality with peer private banks still ratios remains one of the lowest keeping comfort high on the bank,” Prabhudas Lilladher said in a report.
Yes Bank and IndusInd Bank the two private bank stocks which are to be included in the 30-share benchmark index — Sensex. The private sector lenders Yes Bank and IndusInd Bank will enter in the BSE Sensex with effect from 18 December 2017. Following the inclusion of Yes Bank and IndusInd Bank, two pharma sector stocks, Cipla and Lupin, will be removed from the index. Following the announcement, the stock of Yes Bank jumped 2.58% to hit the day’s high of Rs 314 on Monday this week.