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Informist, Monday, Nov. 17, 2025

 

By Anjana Therese Antony and Simran Rede

 

MUMBAI – Aggressive short bets were added to the derivatives chain of Tata Motors Passenger Vehicles after the company reported weak earnings and also reduced the margin guidance for its UK-based subsidiary Jaguar Land Rover for 2025-26 (Apr-Mar). The management said subsidiary will not be able to catch up on production for the rest of the financial year due to the recent cyber attack which had temporarily halted the output. Premiums on out-of-the money put strikes which are 3-12% lower than the spot level surged while those on call options which are 2-13% higher than the current market price declined sharply. 

 

Shares of the Indian parent company closed almost 5% lower at INR 372.70 on the National Stock Exchange, losing over INR 68 billion in market capitalisation Monday. There are short build up in Tata Motors PV and the stock is likely to fall further, said Rajesh Palviya, head of technical and derivatives research at Axis Securities. The support for the stock is seen at INR 360 and then at INR 345 while resistance is pegged at INR 395, Palvia said. 

 

Premiums on out-of-the-money put contracts INR 360-INR 330 expiring next week rose 17-92% and those on call options INR 380-INR 420 declined 79-83%. The highest open interest addition as well as concentration was at INR 380 call and INR 370 put. Short positions were also added to the futures series of Tata Motors Passenger Vehicles, with the November contract closing over 5% lower at INR 372.30 and open interest rising almost 25% to 66.62 million.  

 

The passenger vehicles company Friday reduced the earnings before interest and tax margin for FY26 sharply to 0-2% from the 5-7% it has guided in August. For the September quarter, JLR's EBIT margin was (-)8.6%, worse than the 8.5% it had posted in FY25. The parent company reported a consolidated net loss of almost INR 64 billion from continuing operations in the reporting quarter due to the sharp decline in sales volume of JLR. However, the one-time gain of INR 826 billion from the demerger of its commercial vehicles business aided the overall bottom line, helping the passenger vehicles company post a consolidated net profit of nearly INR 762 billion. 

 

The overall domestic equity market extended its winning run for the sixth straight session Monday. The Nifty 50 closed 0.4% higher at 26013.45 points and the BSE Sensex ended 0.5% higher at 84950.95 points. These indices are still 1% lower than the record highs hit in September last year. The support for the 50-stock index is seen at 25850 level and resistance at 26250-26300, Palviya of Axis Securities said. 

 

There were no major disappointments from the September quarter earnings and the underlying sentiment about the equity market remains positive, he said. He is bullish about sectors such as banking, pharmaceuticals, metals, and non-banking financial services. Derivatives analyst expect the market to tap their new highs this month, but expensive valuations could limit the near-term upside. 

 

Foreign investors were net sellers in the Indian stock market for five straight sessions till Friday, offloading shares worth over INR 70 billion during this period. They hold 80% short positions in index futures, higher than the 70?arish positions they held in the beginning of the current financial year. On other hand, high networth individuals and domestic investors continue to support the market. 

 

--Nifty 50 November closed at 26061.90, up 110.50 points; 48.45-point premium to the spot index

--Nifty 50 December closed at 26245.00, up 107.20 points; 231.55-point premium to the spot index

--Nifty 50 January closed at 26404.00, up 103.10 points; 390.55-point premium to the spot index

 

Glenmark Pharmaceuticals, HDFC Bank, Hero MotoCorp, Tata Motors Passenger Vehicles, Reliance Industries, Infosys, ICICI Bank, Kotak Mahindra Bank, Adani Enterprises, Axis Bank, Tata Steel, State Bank of India, Vodafone Idea, Eternal, and Canara Bank were the most actively traded underlying stocks Monday. End

 

Edited by Akul Nishant Akhoury

 

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