More Stories

Informist, Friday, Dec. 19, 2025

 

By Simran Rede

 

MUMBAI – More bullish bets were added in the derivatives chain of Shriram Finance after the stock surged Friday. The stock hit its record high Friday after the company said that Japan-based MUFG Bank would invest INR 396.18 billion to buy a 20% stake in the non-banking financial company. 

 

The non-bank approved raising funds from the Japanese bank through a preferential issuance of equity shares, marking this stake purchase as the largest foreign direct investment in a financial services company in India. This acquisition will also be the biggest investment for MUFG Bank's parent entity, Mitsubishi UFJ Financial Group, in India.

 

This said, the fund infusion is expected to significantly enhance Shriram Finance's capital adequacy, strengthen its balance sheet, and provide long-term growth capital, the company said in an exchange filing Friday. MUFG Bank will buy 471.12 million shares in Shriram Finance at INR 840.93 per share.

 

The stock rose to an all-time high of INR 913.50 during the session, gaining 5% from the previous close, and ended at INR 901.70. It closed higher for the third straight session, logging most of its gain on Friday. The traded volumes rose sharply and were almost three times the volumes on Thursday.

 

Premiums on out-of-the-money call options expiring on Dec. 30 at INR 910-INR 940 strikes more than doubled and those on put options of INR 900-INR 850 strikes fell 68-79%. "We continue to adopt a bullish approach on the stock with a buy on dips or accumulate on dips approach," Vipin Kumaar, derivatives and technical analyst at Globe Capital Market, said. On the call side, the highest addition of open interest was at INR 960 level and the highest concentration was at INR 900. In the put contracts, the highest addition of open interest was at INR 900 level and the highest concentration was at INR 850. 

 

For the Nifty 50 index, traders wrote put options and unwound call options at multiple strikes after the index snapped a four-session losing streak. The put-call ratio has improved significantly but is still hovering around one, Kumaar said. This indicates a neutral market sentiment.

  

The technical charts as well as derivatives data indicate a rangebound movement for the Nifty 50 in the near term till it is moving between 26060–25700 points, he said. The 50-stock index is expected to face resistance at 26200-26300 levels and find support at 25700–25450 levels. Friday, the index closed at 25966.40 points, up 150.85 points or 0.6%.

 

--Nifty 50 December closed at 26036.90, up 156.30 points; 70.50-point premium to the spot index
--Nifty 50 January closed at 26195.00, up 145.90 points; 228.60-point premium to the spot index
--Nifty 50 February closed at 26340.00, up 143.80 points; 373.60-point premium to the spot index

 

Shriram Finance, Infosys, Bharti Airtel, Reliance Industries, InterGlobe Aviation, Vodafone Idea, HDFC Bank, Tata Motors Passenger Vehicles, ICICI Bank, Cholamandalam Investment and Finance Co., Tata Elxsi, Tata Consultancy Services, Dixon Technologies (India), Vedanta, One 97 Communications, and LTIMindtree were the most actively traded underlying stocks Friday.  End

 

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.