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Informist, Monday, Jun. 2, 2025

By Anjana Therese Antony

MUMBAI – Long positions were added in the options chain of Mahindra & Mahindra after the company's May passenger vehicle sales volume growth not only outperformed industry peers, but was also the highest in seven months and beat the market's expectations. The company also continued to dominate the tractor segment, data showed. This made bulls buy out-of-the-money call options which are almost 6-12% higher than the stock's closing price of INR 3,025.90 Monday on the National Stock Exchange, up almost 2% from the previous closing level. 

The near-term resistance for the stock is seen at INR 3,100-INR 3,200 and the support is seen at INR 2,950-INR 2,900, according to a technical and derivatives analyst. In the options chain of Mahindra & Mahindra, premiums on call strikes INR 3,100-INR 3,200, which are 2-6% higher than the current market price, rose 18-23% and those on put options INR 3,000-INR 2,600 fell 28-44%. Long positions were also added in the futures chain, with open interest in the June series rising almost 1% to 20.95 million and that in the July series increasing 13.2% to 296,000. 

The automaker's passenger vehicle sales volume in May rose 21% from the year-ago period to 52,431 units. This was also way better than the 11% on-year fall in its peer Tata Motors' volume at 42,040 units. Nomura Global Research and Anand Rathi Share and Stock Brokers had projected a 13-18% growth in the segment sales volumes for Mahindra & Mahindra. Mahindra & Mahindra's commercial vehicles sales volume also saw growth, rising almost 8% on year to 21,392 units in May. 

Even though the benchmark Nifty 50 closed lower by over 34 points Monday at 24716.60 points, the rise in shares of Mahindra & Mahindra limited the index fall by more than 9 points. The BSE Sensex ended 0.1% lower at 81373.75 points. The fear gauge, India VIX, also showed the rise in near-term nervousness in the market. The volatility index closed almost 7% higher at 17.1575. 

The aggravated conflict between Ukraine and Russia as well as back-and-forth tariff discussions between China and the US weighed on investors' sentiment Monday. Investors likely shrugged off the higher-than-expected GDP data for the March quarter, which showed the economy grew 7.4% during the three months compared to the Street's expectations of 6.8%, but slower than the 8.4% in the year-ago period. 

However, market experts are bullish about the medium-to-long term growth prospects of the domestic market. Among the positive triggers for them is the increasing buying interest from foreign portfolio investors, who net bought equities worth $2.32 billion in May, higher than the $1.27 billion bought in the previous month and $234.44 million worth of shares purchased in March, according to data from the National Securities Depository. There were no major triggers from the March quarter earnings, which analysts said were largely in line with expectations. 

--Nifty 50 Jun closed at 24809.00, down 62.20 points; 92.40-point premium to the spot index

--Nifty 50 Jul closed at 24935.00, down 67.60 points; 218.40-point premium to the spot index

--Nifty 50 Aug closed at 25066.30, down 59.70 points; 349.70-point premium to the spot index

State Bank of India, Central Depository Services India, HDFC Bank, BSE, Eternal, ICICI Bank, Reliance Industries, Eternal, Punjab National Bank, YES Bank, Apollo Hospitals Enterprise, Axis Bank, Canara Bank, Mahindra & Mahindra, Tata Motors, Bajaj Finance, Infosys, Hindustan Aeronautics, and Inox Wind were the most active underlying stocks Monday.  End

Edited by Tanima Banerjee

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