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Informist, Wednesday, Jun. 4, 2025

By Anjana Therese Antony

MUMBAI – Bears rushed to the derivatives chain of Aditya Birla Fashion and Retail after large deals were recorded on the National Stock Exchange Wednesday. While the buyers and sellers in these transactions could not be identified immediately, media reports said the company's major public shareholder, Flipkart Investments, was the likely seller and disposed of its entire 6% stake.

Flipkart's likely exit comes amid Aditya Birla Fashion's efforts to narrow its financial losses. For the March quarter, the fashion retailer reported a significant improvement in its bottom line, posting a consolidated net loss of INR 168.7 million, against a loss of INR 2.3 billion a year ago, and way better than the Street's expectation of a net loss of INR 1.7 billion.

Within a minute of the market opening, over 76 million shares of Aditya Birla Fashion were offloaded at INR 80.92 per share. Tuesday's closing price of the stock was INR 86.00. The aggregate size of the deal works out to INR 6.15 billion. As of Mar. 31, Flipkart held 6% stake, or 73.17 million shares of the company. Wednesday, the stock closed almost 11% lower at INR 76.77 on the NSE after hitting an over-14-month low of INR 73.10. The near-term support for the stock is seen at INR 70-INR 65 and resistance at INR 85-INR 95, according to a technical and derivatives analyst at a domestic broking firm. 

In the options chain of Aditya Birla Fashion, premiums on INR 75-INR 100 call contracts declined 65-70%, while those on INR 75-INR 65 put strikes increased 150-244%, hinting at near-term weakness for the stock. The maximum addition of open interest was at INR 80 call and INR 75 put options. Short positions were also added in the futures contracts, with open interest in the June series rising 144% to 71.01 million. The June contract also mirrored the weakness in the spot level and closed over 10% lower at INR 77.59.

Meanwhile, the equity market got a break Wednesday after three days of losses. The Nifty 50 and the BSE Sensex each ended 0.3% higher at 24620.20 points and 80998.25 points. While analysts expect the market to go through periodic corrections due to high valuations and no signs of a major pick-up in earnings, they are bullish on India's long-term prospects on hopes of the government's capital expenditure, an above-normal monsoon, better demand, and a pick-up in earnings growth by the second half of the current finanical year.

--Nifty 50 Jun closed at 24721.00, up 45.70 points; 100.80-point premium to the spot index

--Nifty 50 Jul closed at 24855.00, up 38.80 points; 234.80-point premium to the spot index

--Nifty 50 Aug closed at 24960.20, up 44.20 points; 340.00-point premium to the spot index

Eternal, Hindustan Aeronautics, BSE, HDFC Bank, ICICI Bank, Bharti Airtel, Bharat Electronics, Dixon Technologies (India), Reliance Industries, State Bank of India, Cholamandalam Investment and Finance Co., Punjab National Bank, Aditya Birla Fashion and Retail, Tata Motors, Central Depository Services India, Bajaj Finserv, SRF, Tata Technologies, Bajaj Finance, and Axis Bank were the most active underlying stocks Wednesday.  End

Edited by Rajeev Pai

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