More Stories

Informist, Wednesday, Oct. 1, 2025

 

By Anjana Therese Antony

 

MUMBAI – Aggressive bullish bets were placed on the derivatives chain of Tata Motors amid the optimism towards the stock, which closed as the top gainer in the Nifty 50 index Wednesday. Premium on deep out-of-the-money call options expiring this month almost doubled while those on put contracts more than halved, indicating the potential upside for the stock. The shares surged as the company's demerger is set to take effect this month, and the automaker reported a sales volume recovery in September.

The stock closed almost 6% higher at INR 718.35 on the National Stock Exchange. The near-term support for the stock is seen at INR 700-INR 680 and resistance at INR 800-INR 820, according to derivatives analysts at two domestic brokerages.

 

The highest open interest addition, as well as concentration, was at INR 800 call and INR 700 put options. Premiums on Tata Motors' call options INR 720-INR 820 increased 29-132% and open interest additions in these contracts were 1.0-2.5 million. On the puts side, premiums on INR 710-INR 650 strikes declined 66-72%. 

 

The stock rose after Tata Motors fixed Oct. 14 as the record date for the demerger of its commercial vehicles business into a separate listed entity, TML Commercial Vehicles. A day after the record date, shares of Tata Motors, excluding its commercial vehicle business, will be traded under Tata Motors Passenger Vehicles. 

 

During market hours Wednesday, the company also reported a recovery in its sales volume for September, posting high double-digit year-on-year and month-on-month growth. The automaker reported its highest-ever monthly passenger vehicle sales of 60,907 units, representing a 47% increase from the same period last year and a 52% increase from the previous month. 

 

The sharp rise in the stock price also followed the recent weakness caused by the cyberattack against the company's UK subsidiary, Jaguar Land Rover, in early September, which led to the closure of its factories. Media reports said that the subsidiary, which accounts for approximately 70% of Tata Motors' overall revenue, would have to bear the related damages due to a lack of cyber insurance. However, the pressure on the parent company's stock price eased after Tata Motors said JLR will partially restart its operations in a few days. The UK government had also said that it would underwrite a 1.5-billion-pound sterling loan guarantee to the subsidiary due to the severe impact of the cyberattack. 

 

Gains in shares of Tata Motors contributed to an almost 0.1% rise in the Nifty 50, which closed 0.9% higher at 24836.30 points. The sharp rise in the headline index was supported by banks and financial services stocks, which rose on the positive comments from Reserve Bank of India Governor Sanjay Malhotra at the monetary policy announcement Wednesday.

 

The governor said the current macroeconomic conditions and outlook have opened up policy space for further supporting growth. The Monetary Policy Committee, which left the policy repo rate unchanged at 5.50%,

raised the GDP growth estimate for the current financial year to 6.8% from 6.5?rlier and cut the inflation projection to 2.6% from 3.1% earlier, boosting hopes of possible ease in worries about economic growth amid tariff woes. However, the RBI also said the government's goods and services tax cuts will not fully offset the impact of US tariffs. 

 

--Nifty 50 October closed at 24982.80, up 204.50 points; 146.50-point premium to the spot index

--Nifty 50 November closed at 25109.00, up 194.70 points; 272.70-point premium to the spot index

--Nifty 50 December closed at 25259.00, up 269.50 points; 422.70-point premium to the spot index

 

Tata Motors, HDFC Bank, ICICI Bank, RBL Bank, Kotak Mahindra Bank, Axis Bank, Reliance Industries, State Bank of India, Infosys, Shriram Finance, REC, Bajaj Finance, Bharti Airtel, Mahindra & Mahindra, Maruti Suzuki India, Bharat Electronics, Trent, and Adani Enterprises were the most active underlying stocks Wednesday.  End 

 

Edited by Saji George Titus

 

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.