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YES Bank shares have surged 10% over the past three sessions, touching a fresh 52-week high, as investors pile in ahead of quarterly earnings and amid renewed optimism following Japanese lender Sumitomo Mitsui Banking Corporation’s (SMBC) stake purchase.On Monday, the stock rose as much as 1% to Rs 24.25 on the BSE. The Mumbai-based lender has recorded gains in nine of the last ten trading sessions, with last week marking its best weekly performance since May.The rally comes after SMBC acquired a 24.22% stake in YES Bank in September 2025, buying shares from a consortium of lenders including State Bank of India, HDFC Bank, Federal Bank, Bandhan Bank, and CA Basque Investments, an affiliate of Carlyle Group. The Japanese firm now holds 759.51 crore shares, purchased at Rs 21.5 per share, the price at which it first entered the bank.Traders say crossing that price level has reinforced market confidence in YES Bank’s turnaround prospects, with investors anticipating strategic support from the Japanese lender.Earnings anticipation keeps sentiment buoyantInvestor focus is now on YES Bank’s Q2 FY26 results, scheduled for October 18. In the September quarter, the bank reported loans and advances rising 3.9% quarter-on-quarter to Rs 2,50,586 crore, while total deposits climbed 7.9% year-on-year to Rs 2,96,831 crore. Analysts say expectations of continued growth in profitability and asset quality are keeping sentiment elevated ahead of the earnings release.Technical indicators show strong momentumTechnically, YES Bank is trading above all eight key simple moving averages, from the 5-day to the 200-day SMA, signaling sustained bullish momentum. The Relative Strength Index (RSI) at 83.1 suggests the stock is overbought, which could lead to short-term profit-taking. The Moving Average Convergence Divergence (MACD) at 0.5 remains above both the center and signal lines, reinforcing the ongoing upward trend.Stock performance recovers after 2024 slumpYES Bank shares have gained 16% in the past month and 23% year-to-date, rebounding from a 9% decline in 2024. Last Friday, the stock touched a 52-week high of Rs 24.30 on the BSE, marking the best weekly performance since May.Market watchers say the rally reflects renewed confidence in the bank’s recovery, but technicals suggest traders may keep a close eye for possible short-term pullbacks ahead of the Q2 earnings announcement.Also read | TCS, Tata Motors tumble up to 42% from peak, with over Rs 4 lakh crore wiped off Tata stocks in 2025 amid boardroom turmoil Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

India’s airlines are redrawing their global route maps as travel demand diversifies beyond traditional hubs. New-generation narrow-body aircraft—capable of flying up to seven hours nonstop—are allowing carriers to reach destinations once limited to wide-bodies. The change reflects both shifting passenger patterns and a deeper focus on efficiency in an uncertain cost environment. Secondary cities like Kochi, Lucknow, and Ahmedabad are seeing increased international traffic, prompting carriers to open medium-haul routes using narrow-body aircraft that fit smaller, high-demand markets.India’s airlines are reshaping their international strategy by deploying long-range narrow-body aircraft on medium-haul routes. New-generation jets such as the Airbus A321neo, A321LR/XLR, and Boeing 737 MAX are enabling nonstop flights from Indian cities to destinations in Africa, the Middle East, and East Asia. The shift combines cost efficiency with expanded reach, aligning India’s aviation model with evolving global trends.With IndiGo, Air India, and Akasa Air leading the transition, industry experts say the next phase of India’s international growth will rely on a hybrid fleet model—narrow-bodies driving network reach and wide-bodies anchoring capacity and premium services.Also Read| IndiGo to launch direct flights to Greece from January 2026 using India's first Airbus A321XLR aircraftNarrow-bodies extend India’s reach Indian carriers are increasingly using narrow-body aircraft for routes that were once the preserve of larger wide-bodies. IndiGo has deployed Airbus A321neo aircraft on routes such as Mumbai–Istanbul, Mumbai–Nairobi, and Delhi–Jakarta, and recently added Hyderabad–Singapore and Bengaluru–Bali to its international network. The Air India group, which has absorbed Vistara into its operations, is flying Airbus A321LRs on regional routes like Delhi–Hong Kong and Delhi–Denpasar, while Air India Express continues to expand across the Gulf with Boeing 737-8 MAX aircraft on sectors such as Kozhikode–Dammam and Delhi–Doha. Akasa Air has also joined the segment, operating MAX jets to Doha, Jeddah, and Kuwait. By using single-aisle jets, Indian airlines can now open “long-thin” routes—markets with moderate demand that cannot support wide-body economics—while optimizing fuel burn and improving aircraft utilization. The model allows airlines to control exposure to cost components like fuel and forex, both of which have a significant bearing on margins.Air India, Akasa Air, & IndiGo declined to comment.A hybrid model for sustainable expansion The future of India’s international air traffic growth will depend on balancing the strengths of both fleet types. “The future of India’s international air traffic growth lies in a hybrid fleet strategy, narrow bodies driving reach, wide-bodies anchoring scale and premium,” Girish Nair, Partner for Mobility and Logistics at KPMG, told ET Online. Nair explains that long-range narrow-bodies give Indian carriers flexibility to add new destinations in Europe, East Asia, and Africa without the financial risk of wide-body deployment. “These aircraft deliver lower fuel burn, reduced unit trip costs, and superior aircraft utilization,” he adds. “In airline business, majority of the cost components like fuel, forex fluctuations are not in direct control and has a huge impact on margins, these advantages are strategically compelling.” He notes that narrow-bodies also allow carriers to “right-size” capacity for emerging international routes. However, Nair cautions that efficiency comes with limits. “Wide-bodies retain superiority in passenger comfort, cargo capacity, and brand positioning on long-haul routes,” he says, adding that extended-range narrow-body operations require strict ETOPS compliance and disciplined safety procedures. Aircraft manufacturers are now pitching India-focused cabin configurations and operational models, reflecting the country’s emergence as a global aviation hub. “As India positions itself as a global aviation hub, the winning strategy will likely be a hybrid one, leveraging narrow-body economics for new city pairs, while retaining wide-body lift for capacity-dense, premium, and cargo-heavy sectors,” Nair adds.Technology broadens the single-aisle horizon Advancements in aircraft design are central to this transformation. The improved range and efficiency of modern narrow-bodies have blurred traditional fleet boundaries. “Indian airlines are increasingly considering narrow-body aircraft for long-haul operations,” Sakshi Suneja, Vice President and Sector Head, Corporate Ratings at ICRA Limited, says. “This trend emerges as global carriers, too, are exploring the extended capabilities of modern single-aisle jets for longer routes.” According to Suneja, the financial logic is compelling. “Their lower operating costs, driven by improved fuel efficiency and reduced crew requirements, make long-haul flights more financially sustainable, especially from secondary cities,” she explains. This could allow Indian carriers to compete more directly with global transfer hubs, capturing traffic through direct connectivity. Still, Suneja highlights challenges that accompany this transition. “Passenger acceptance of long-haul travel on single-aisle aircraft, which typically provide less space and fewer amenities, remains a concern,” she says. “There is a risk that brand perception could suffer if comfort expectations are not met, especially in comparison with foreign carriers known for premium services.” She also points to cargo limitations, given smaller belly holds, and the need for Indian airports to improve turnaround and processing efficiency to handle the increased flow of narrow-body international flights.Also Read| Etihad launches first premium narrow-body aircraft service from KolkataThe next phase of India’s international aviation Industry data from the Directorate General of Civil Aviation (DGCA) and global schedules provider OAG show that nearly 70 percent of India’s international flights under seven hours are already operated by narrow-body aircraft. With deliveries of the Airbus A321XLR expected from 2025 onward, Indian carriers plan to extend reach deeper into Europe, North Africa, and Southeast Asia, adding cities such as Rome, Milan, Prague, and Ho Chi Minh City to their future networks to be serviced by narrow-bodies. For the Air India group, the merger of Vistara’s long-range narrow-bodies with Air India Express’s 737 MAX fleet strengthens its ability to match aircraft type with route demand. IndiGo, with the world’s largest A321neo orderbook, is expected to lead the next phase of India’s direct connectivity growth. Experts agree that the coming decade will be defined by this dual approach—deploying narrow-bodies to open new markets and using wide-bodies for premium and cargo-heavy routes. As Suneja observes, “A mixed fleet strategy provides flexibility while mitigating the risks of relying solely on one aircraft type.” And as Nair adds, “The interplay of these models may well define the next decade of international expansion for Indian carriers.”

Shares of Tata Capital dipped further to Rs 328 apiece on the NSE following a flat debut on Monday, October 13. The much-awaited IPO listed failed to deliver the expected returns with shares debuting at Rs 330, marking just a 1.2% premium over the issue price of Rs 326 apiece on the bourses earlier in the session. What should you do?Emkay Global Financial Services initiated coverage with an Add rating on Tata Capital and a target price of Rs 360 per share, implying about a 10% upside from the IPO price. Despite a subdued market debut, analysts remain optimistic, citing the company’s strong Tata Group backing and improving financial profile as key growth drivers.Emkay noted that Tata Capital’s AAA credit rating and access to low-cost funding, supported by the Tata brand, position it well to become a significant NBFC player. The brokerage projects around a 30% EPS CAGR over FY25–28, led by a turnaround in the vehicle finance segment and a higher share of secured lending, with AUM expected to rise at a 24% CAGR during the same period.Domestic brokerage firm JM Financial also gave an Add rating on the stock, saying that the company has a highly diversified product mix, offering 25+ distinct lending products broadly classified into three businesses: 61% of its loan book comprises retail finance, 26% SME, and 13% corporate loans.Also read: Tata Capital shares make weak debut, list at just 1% premium after 2025’s biggest IPO“With the highest credit rating of AAA/Stable, Tata Capital enjoys easy access to funds at lower interest rates. However, a higher share of secured loans and greater competition from banks in TCL’s segments lead to lower-than-peer NIMs of about 5-5.5%, which, along with lower credit cost, translates into RoA of 2.1-2.5% (in FY23/FY24),” it added.At the IPO upper price band of Rs 326, Tata Capital’s implied valuation stands at 2.7x FY27E P/BV. Considering its AUM growth and RoE profile, its valuation is likely to fall between peers CIFC and HDB, which trade at 3.7x and 2.5x FY27E P/BV, respectively. Downside risks include an economic slowdown affecting AUM growth, delayed NIM expansion, higher credit costs, and regulatory challenges.However, JM and Emkay acknowledged that the moderate return profile limits near-term re-rating potential. "The moderate return profile limits the scope of a re-rating over the near-to-medium term; stock returns will largely be led by BV compounding," the latter said.“Despite being India’s largest IPO of 2025 and backed by the strong Tata Group brand, the listing was rather subdued compared to market expectations. The IPO had received decent investor participation, getting subscribed about 1.95 times overall, led by institutional demand. Tata Capital, a leading NBFC, enjoys a diversified presence across retail and corporate lending, wealth management, and other financial services. The company’s fundamentals remain sound with steady growth and strong parentage, but valuations were seen as fair, leaving limited room for listing-day excitement. Going ahead, investors may consider booking partial profits near listing levels while holding some shares for the long term, as the company’s growth prospects remain attractive in India’s expanding financial services sector. A stop-loss around Rs 300 is advisable to protect downside risk in the near term,” Shivani Nyati, Head of Wealth at Swastika Investmart, said.Also read: Nifty gives zero returns in a year: 3 tests reveal whether to be greedy or fearful this DiwaliEstablished in 2007, Tata Capital is a diversified NBFC with approximately 80% of its loan book in secured segments. Retail finance constitutes 61% of its loans, with the company offering a wide product range across various geographies and sourcing channels to minimize concentration risk.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)