Tit - bits

#The Nifty50 is likely to consolidate near the

Photo: Economic Times 

current level of around 11700 before taking a further move, on the either direction. However some sectors like banks,  especially the Private Bank space is likely to do well. The correction of around 1000 points in Sensex has removed the fat it had accumulated during the last one week, due the pre budget rally. 

#The Private Banks would get a sentimental push due to recent developments in the Union Budget. The higher deposit insurance could assuage depositors following the recent collapse of PMC Bank. The Union budget has proposed to raise deposit insurance to ₹5 lakh per depositor from the existing ₹1 lakh. 

Buy the shares of Yes Bank Ltd at around Rs.36, for short term targets of Rs.42/45; SL: Rs.32. It is the only Private Sector Bank which is trading below its book value. If the steel and cement sectors are performing well, as is seen today,  then we can remain optimistic on the banking sector. 
The shares of Yes Bank Ltd (Rs.36) fell today in the cash market by as high as 5.01% on a report from IDBI Capital Markets & Securities that it is a probable candidate for exclusion from Nifty50, during the next review of the Nifty 50 Index; which will be carried out on March 31, 2020.
But that is a too long time to go and much water will flow through the river Gnga by that time -- we haven't even entered the "Teen - February".
It is pertinent to mention here Yes Bank Ltd is a significant player in the market with an almost $40 billion (Rs. 2.84 lakh crore, approx) balance sheet.
Meanwhile, on January 10, 2020, the board of YES Bank Ltd had approved fund raising of up to Rs.10,000 crore in one or more tranches, on such terms and conditions as it may deem fit, by way of issuance of securities includitung but not limited through Qualified institutional placement (QIP)/ Global Depository Receipts (GDRs)/ American Depository Receipts (ADRs)/ Foreign Currency Convertible Bonds (FCCBs)/ or any other methods on private placement basis.
YES Bank has called extraordinary general meeting (EGM) of the Bank Friday, February 07, 2020 to take shareholders' approval for the proposed fund raising.
The bank said that, its overall Capital Adequacy Ratio is comfortably above regulatory requirements and all efforts are being made to financially strengthen the Bank even further.
Earlier, in August 2019, YES Bank had raised Rs.1,930 crore through the QIP route. The Bank allotted 231 million equity shares to eligible qualified institutional buyers (QIBs) at Rs.83.55 per equity share, as per Sebi pricing formula. Thie QIP price of its share,  is more than double the CMP of Yes Bank Ltd (Rs.36).