Indian stocks may find it hard to pick a clear direction today, mirroring the cautious tone across major Asian markets.
That wariness, however, hasn’t spilled over to the primary market — investors are eagerly snapping up new listings.
LG Electronics India’s $1.3 billion IPO was fully subscribed on the first day itself.
Meanwhile, UK Prime Minister Keir Starmer kicks off a two-day visit to India, with markets watching talks under the recently signed free-trade agreement that aims to double bilateral trade over the next five years.
Tapered valuation does the trick for LG
Tapered valuation does the trick for LG
LG Electronics India’s billion-dollar-plus offering was fully sold on the first day — a rare feat for an offering of this size in the country.
What drew investors is valuation discipline. Initially valued at $15 billion, LG’s India unit chose to nearly halve its expectations, leaving enough room for gains for investors betting on the country’s consumption boom. The issue won’t raise fresh capital for the Indian arm, but the South Korean parent stands to gain $1.3 billion.
Consumer discretionary outpaces staples
Echoing the consumption-driven optimism seen in LG Electronics’ India debut, JM Financial analysts expect the consumer discretionary stocks to outperform staples in the September quarter.
Early festive demand, GST rate cuts, and higher disposable incomes are all lifting sentiment in apparel and retail. While quick-service restaurants face headwinds, segments such as fashion and value retail are expected to sustain growth momentum.
JM’s preferred plays — Vishal Mega Mart, Titan, Baazar Style and Metro Brands — reflect a pivot toward aspirational spending as consumers balance affordability with premiumization.
Luxury housing cools amid flattening growth
At the other end of the consumption spectrum, India’s housing market is showing early signs of moderation. Overall, home growth has plateaued, while unsold inventory has inched higher, particularly in the 20 million rupees-50 million rupees segment, according to Knight Frank. However, the luxury and super-luxury categories now face higher Quarters to Sell — nine and 14.4, respectively — pointing to a gradual cooling after several quarters of exuberance, the report says. For investors, the shift likely highlights a maturing demand curve.
Equity derivatives turnover on India’s NSE is finally showing signs of recovery. For almost a year, this segment has witnessed volumes slide due to regulatory curbs aimed at cooling retail participation.
As the changes — including the shift in weekly contracts expiry days — settle, activity is starting to rebound. Still, the market regulator remains cautious over retail participation, and the risk of doing away with weekly expiries continues to hang over the market.
More stories like this are available on