YES Bank, Maruti Suzuki, Eicher Motors, Hero MotoCorp hit 52-week lows

Shares of four companies – YES Bank, Maruti Suzuki, Eicher Motors and Hero MotoCorp – from the Nifty 50 index hit their respective 52-week lows on the National Stock Exchange (NSE) on Friday in intra-day trade.

Shares of YES Bank hit an over two-year low of Rs 184, down 9% on the BSE in intra-day trade, falling 50% in past one month. The stock of private sector lender was trading at its lowest level since May 10, 2016.

A sharp decline in market price has seen the market capitalisation (market-cap) of the bank declined by Rs 425 billion during past one month. Currently, with Rs 432 billion market-cap, YES Bank slipped to 63rd positions in overall m-cap ranking, the BSE data shows. The bank stood at 36th rank as on August 28, 2018.

In past six trading days, YES Bank slipped 42% from Rs 323 on September 18, 2018, after the Reserve Bank of India (RBI) denied an extension to Rana Kapoor as the bank’s managing director and chief executive officer (MD & CEO).

The board of YES Bank at its meeting held on September 25, recommended establishment of committee to search & select a new MD & CEO and request to RBI an extension for the MD & CEO up to April’19 at least to review the FY19 audited results and a further extension upto Sept’19 (till AGM) to oversee transition. The board also appointed Rajat Monga & Praloy Mandal as executive directors (EDs) as a part of a long-term succession planning.

“The board has not been able to give a clear picture on the succession and further course for the bank. The timelines and uncertainty on approvals from RBI for both MD & CEO (should be difficult) and EDs will keep near term stock performance muted,” analysts at Prabhudas Lilladher said in event update.

Shares of automobiles companies were continued reeling under pressure with Nifty Auto index hit a 52-week low of 9,635, down 2% at 01:13 pm. In past one month, Maruti Suzuki India has slipped 20%, while Eicher Motors skid 15%, followed by Tata Motors (12.5%) and Hero MotoCorp (8.7%). In comparison, the Nifty 50 index down 6% during the month.

“The rising crude oil and commodity prices especially petrol and diesel and frequent policy changes are the key concerns for the growth of the auto industry,” according to CARE Ratings.

Let’s block ads! (Why?)