Shares in Yes Bank gain 3.2% after Morgan Stanley said in a note that share price would rise relative to the country index over the next 30 days, citing improving liquidity conditions in the banking system and valuations, dealers say.
The investment bank said, "We expect wholesale funding institutions to do well, as funding costs reduce to Oct-Dec 2012 levels."
Morgan Stanley adds valuations for Yes Bank at 10 times FY14 earnings and 1.9 times book value are attractive and below historical average levels, providing a margin of safety, in its view.
