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Informist, Thursday, Nov. 6, 2025

By Anjana Therese Antony

MUMBAI – Aggressive short bets were added to the options chain of Hindalco Industries amid worries about its US arm Novelis's operations for the current financial year. The subsidiary is likely to drag down Hindalco's operating profit in the near term as the fire at its Oswego unit in September is expected to result in a slight fall in its volumes. There was a sharp fall in premiums of out-of-the-money call options expiring this month while those on put options rose, indicating near-term pessimism about the stock. 

Novelis has estimated the damage caused by the fire at its aluminium factory at $21 million. It expects to recover 70-80% of the damage through insurance. Meanwhile, the US administration's tariff policies also hit Novelis's financial performance for the September quarter. The subsidiary's management said the tariffs had had a net negative impact of $54 million on its earnings before interest, taxation, depreciation, and amortisation in the September quarter. 

ICICI Securities has downgraded its rating on the Hindalco stock to "reduce" from "hold". This is because of the possible poor performance of Novelis in the near term, uncertainty with regard to global trade and tariffs, higher debt, and lower return profile of capital expenditure, the broking firm said. 

Shares of Hindalco closed over 5% lower Thursday at INR 788.40 on the National Stock Exchange. Almost 35 million shares of the company changed hands on the bourse, seven times the one-month daily average of 5 million shares. Support for the stock in the near term is seen at INR 750-INR 730 and resistance at INR 800-INR 820. Premiums on INR 790-INR 850 call options expiring at the end of November declined 62-82% and those on INR 770-INR 690 put options increased more than 130%. The highest addition as well as concentration of open interest was at the INR 800 call and INR 770 put.

--Nifty 50 November closed at 25637.20, down 71.10 points; 127.50-point premium to the spot index

--Nifty 50 December closed at 25820.30, down 77.60 points; 310.60-point premium to the spot index

--Nifty 50 January closed at 25990.30, down 93.00 points; 480.60-point premium to the spot index

Hindalco Industries, State Bank of India, ICICI Bank, Reliance Industries, One 97 Communications, UPL, HDFC Bank, Bharti Airtel, InterGlobe Aviation, Mahindra & Mahindra, Asian Paints, Astral, Grasim Industries, and Delhivery were the most actively traded underlying stocks Thursday.  End

Edited by Rajeev Pai

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