SBI has been allowed to buy stake in YES Bank. After the news, stock price of YES Bank jumped by 25 percent.

As per Abhimanyu Sofat, Head Of Research, IIFL Securities, investors should be cautious about YES Bank. Sofat added, As per media reports, SBI has been told to invest as a lead in a consortium in Yes Bank. Though we may see a big spike in price of Yes Bank and negative reaction in price of SBI, we recommend caution to retail investors. The critical thing to watch would be percentage dilution of equity taking into consideration the conversion of existing bonds issued by Yes Bank into equity."

YES Bank stock has been news driven in the last few months and the volatility if very high in this counter. Investors with high risk investing should only consider this stock.

Rusmik Oza, Senior VP (Head of Fundamental Research-PCG) at Kotak Securities considers HDFC, Cholamandalam Investment & Finance, M&M Financial Services as safe bets in current market conditions.