Shares of Yes Bank gained 6% in Friday's trade on November 6 to settle at ₹17.26 apiece, extending their winning run to a third consecutive session. The rally also lifted the stock's weekly returns to 14%, marking a sharp reversal after seven consecutive weeks of losses.
Although there was no immediate fundamental trigger behind the rally, a sharp spike in trading volumes helped the stock recover from its recent weakness. Around 514 million shares changed hands across the BSE and NSE during the session, nearly 3.78 times the stock's weekly average volume, according to Trendlyne data.
Yes Bank shares came under significant pressure in October, declining 28% after the Supreme Court upheld the Bombay High Court judgment against the write-off of ₹8,415 crore worth of Additional Tier-1 (AT-1) bonds, undertaken in March 2020 as part of the lender's reconstruction.
The verdict marked a significant victory for bondholders whose investments were written off during the bank's rescue six years ago.
On October 15, the apex court dismissed appeals filed by Yes Bank, the Reserve Bank of India (RBI), and the Union government, upholding the Bombay High Court's January 20, 2023, judgment on the matter.