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Informist, Wednesday, Jun. 25, 2025

By Anjana Therese Antony

MUMBAI – Foreign broking firm Macquarie's bullish comments on Titan Co. have pushed the company's stock price higher and led to bullish bets in its options chain. The brokerage was optimistic about jewellery demand despite the recent surge in gold prices. Premiums on call strikes that are 1-5% higher than the stock's spot level and expire Thursday rose multifold, while those on out-of-the-money put contracts nosedived.

The broking firm retained its "outperform" rating on the stock with a target price of INR 4,150, almost 14% higher than the current price. The stock closed 3.6% higher Wednesday at INR 3,652.20 on the National Stock Exchange after the broking firm's views. The company's market capitalisation increased almost 4% from the previous day to INR 3.242 trillion.

Premiums on INR 3,680-INR 3,820 call contracts expiring Thursday increased 25-822%, while premiums on INR 3,600-INR 3,260 put options declined 69-94%. The highest addition of open interest was seen at INR 3,760 call and INR 3,600 put strikes. The maximum concentration of open interest was at the INR 3,600 call and INR 3,400 put options. Traders also added long bets to the June, July, and August futures series of Titan Co. and all these contracts closed around 3.5% higher. Open interest in the June series rose 38% to 5.38 million and in the July contract increased over 38% to 11.85 million. 

Macquarie said healthy demand is expected to aid jewellery growth in the June quarter, CNBC-TV18 reported. Though footfalls moderated in June, Titan's jewellery segment is expected to witness 21% growth in sales in the June quarter.

The broking firm believes the company's earnings before interest and tax margin bottomed out in the financial year 2024-25 (Apr-Mar) and expects over 20% growth in jewellery sales in the June quarter. Titan's confidence in keeping the jewellery business EBIT margin between 11% and 11.5% for FY26 is supported by the company's ability to counter competition through new launches, as per the CNBC-TV18 report.

Gains in Titan's stock price contributed to a rise of nearly 0.1% in the Nifty 50 Wednesday. The benchmark index closed 0.8% higher at 25244.75 points. The BSE Sensex ended 0.9% higher at 82755.51 points. The Indian equity market surged as global crude oil prices eased and hopes of the ceasefire between Iran and Israel holding rose. At 1613 IST, the Brent crude oil August futures contract was up 0.7% at $67.60 per barrel. The contract had crossed $80 per barrel Monday. The equity market has recouped the losses made after the conflict between Israel and Iran flared up a couple of weeks ago.

However, foreign investors added more short positions in index futures Tuesday, indicating some caution. They added more than 10,000 short positions and nearly 4,000 long positions. About 77% of their positions in index futures are short and the remaining 23% are long. They net sold shares worth more than INR 52 billion Tuesday even though the market had closed marginally higher.

--Nifty 50 Jun closed at 25250.00, up 178.30 points; 5.25-point premium to the spot index

--Nifty 50 Jul closed at 25353.60, up 174.50 points; 108.85-point premium to the spot index

--Nifty 50 Aug closed at 25462.00, up 159.80 points; 217.25-point premium to the spot index

HDFC Bank, ICICI Bank, Reliance Industries, Bajaj Finance, Infosys, RBL Bank, Multi Commodity Exchange of India, Tata Consultancy Services, State Bank of India, Bharti Airtel, Titan Co., InterGlobe Aviation, Axis Bank, Mahindra & Mahindra, Bharat Electronics, Axis Bank, Kotak Mahindra Bank, Eternal, and Larsen & Toubro were the most active underlying stocks Wednesday.  End

Edited by Rajeev Pai

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