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Informist, Friday, Jun. 20, 2025

By Anjana Therese Antony

MUMBAI – Foreign broking firm Macquarie's optimistic views on Mahindra & Mahindra and the automobile sector led to bullish bets on the company's options chain Friday. Macquarie expects rural demand to improve and a low base to support two-wheeler and tractor demand, media reports said, citing the broking firm. While premiums on deep out-of-the-money call contracts more than doubled, those on put options more have halved, indicating near-term bullishness for the stock.

Macquarie expects tractors and two-wheelers to lead the growth in the current financial year, while passenger vehicle and commercial vehicle growth is expected to remain relatively muted, NDTV Profit reported, citing the broking firm. The brokerage has maintained its 'outperform' rating on the stock for a target price of INR 3,536, which is around 11% higher than the market price. The stock Friday closed 3% higher at INR 3,184.40 on the National Stock Exchange. 

Premiums on INR 3,200-INR 3,500 call options increased 129-226%, while those on INR 3,100-2,300 put contracts declined 60-74%. The highest open interest addition is at INR 3,250 call and INR 3,100 put contracts. The maximum concentration of open interest was at INR 3,200 call and INR 3,000 put strikes.

The rise in M&M's share price contributed to almost 0.1% rise in the Nifty 50, which closed 1.3% higher at 25112.40 points. The near-term support for the index is seen at 25000-24950 points and resistance at 25250-25300 points. Even though the market rose sharply Friday, analysts see periodic corrections due to persisting uncertainty around US tariffs and mounting geopolitical tensions in West Asia. The consequent volatility in global crude oil prices is also weighing on the sentiment.

However, analysts are bullish about India's long-term growth prospects, supported by hopes of better corporate earnings growth by the second half of the current financial year, pick up in the government's capital expenditure, and above-normal monsoon.

--Nifty 50 Jun closed at 25096.50, up 293.40 points; 15.90-point discount to the spot index

--Nifty 50 Jul closed at 25192.00, up 276.50 points; 79.60-point premium to the spot index

--Nifty 50 Aug closed at 25290.00, up 272.10 points; 177.60-point premium to the spot index

Bharat Electronics, Trent, Reliance Industries, HDFC Bank, Bharti Airtel, Infosys, ICICI Bank, Vedanta, Bajaj Finance, JSW Steel, Nestle India, IndusInd Bank, Mahindra & Mahindra, Hindustan Aeronautics, Power Finance Corp., BSE, State Bank of India, Multi Commodity Exchange, and UltraTech Cement were the most active underlying stocks Friday.  End

Edited by Ashish Shirke

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