Precious metals analysts at Heraeus report that the market is showing strong warning signs.
Gold, silver, platinum, and palladium are all now considered severely overbought based on key technical indicators.
“Silver’s near vertical rally has triggered a series of cautionary signals across both technical and structural fronts,” the analysts were quoted as saying in a Kitco report.
On COMEX, the silver contract had breached the $50 per ounce mark for the first time on Monday. Spot silver had climbed to $51 an ounce last week.
The Relative Strength Index (RSI) has been consistently overbought since August, while the Average True Range (a measure of volatility) has reached a 14-year peak, Heraeus analysts said in a Monday report.
“A pronounced deviation away from the 200-day moving average (200-dma) also signals the market is stretched to extreme levels,” they said.
The last instance of such a divergence occurred during the post-Covid-19 boom, and after the price peaked it fell by 27% over the next two months.
Adding to these worries is the backwardation of the futures curve, where CME contracts for 12 months and beyond are trading below the spot price, according to the analysts.
Heraeus analysts further noted that last week silver prices encountered some profit booking, before continuing the rally towards $50 an ounce.
ETFs
The analysts reported that ETFs reduced their holdings by 7.6 million ounces in early-week trading, leading to three consecutive sessions of outflows due to profit-taking.
After a significant outflow, strong dip-buying quickly absorbed these losses, adding back 8.3 million ounces, they added.
This surge drove spot prices to an all-time high above $50 per ounce, resulting in year-to-date gains of 70%.
Near-term market tightness is being reinforced by implied one-month lease rates which spiked to around 8% at the start of the month and jumped higher last week.
Silver set a new all-time high of $52.071 during Monday’s trading, and the price continues to hover close to the $52/oz level.
Spot silver prices set a new record high of $52.071 per ounce during Monday’s trading session.
Prices remained close to $52 per ounce at the time of writing.
Heraeus analysts said silver was not the only precious metal, but gold, platinum and palladium were all severely overbought at current levels.
Gold
The analysts noted that gold was nearly 20% above its long-term trend, while platinum remained near that threshold for the last couple of weeks.
Palladium’s recent breakout also pushed it into similar territory last week. Readings this high have typically been followed by corrections and sometimes more significant bear markets.
They further noted that gold was at an inflection point after hitting $4,000 per ounce, and it was difficult to predict whether prices have reached their peak or if it was another peak on the way to more gains.
The gold price has gone up for eight consecutive weeks, which is unusual but not unprecedented, and is very overbought on both daily and weekly timeframes.
Gold is currently experiencing a robust bull market, characterised by strong momentum.
This upward trend could persist for an extended period before the market enters another consolidation phase, according to Heraeus.
A correction of similar size or duration to those would not be unusual. In the short term, a down week would be normal as prices have rarely risen for eight or more consecutive weeks even if the rally then resumes.
At the time of writing, gold on COMEX was at $4,125.45 per ounce, up 3.1% from the previous close.
The contract had hit a record high of $4,136.62 per ounce earlier in the day.
With new licensing requirements for foreign entities using Chinese-sourced rare earths, chip equipment makers face mounting uncertainty.
These metals – critical for high-precision vacuum systems and magnet-based components – are foundational to advanced semiconductor manufacturing.
Evercore ISI warns that several large-cap names could be exposed to supply disruptions and cost inflation.
While the restrictions won’t kick in until December, investors are already bracing for potential fallout.
Among the most vulnerable are Applied Materials, Lam Research, and KLA Corp – three US giants deeply embedded in the chipmaking supply chain.
Applied Materials Inc (NASDAQ: AMAT)
Applied Materials Inc stands out as one of the most exposed players in the semiconductor capital equipment space.
Its tools rely heavily on ultra-clean vacuum environments, often maintained by turbopumps that incorporate rare-earth-based permanent magnets.
These magnets – typically made from neodymium-iron-boron or samarium-cobalt alloys – are now subject to China’s export licensing regime.
“These materials are essential for atomic-scale precision, especially in sub-10nm geometries,” said Evercore ISI senior analyst Mark Lipacis.
If sourcing becomes constrained, AMAT could face delays in tool shipments or increased costs from alternative suppliers.
Applied Materials stock is currently up some 35% year-to-date, but the looming supply chain risk could dampen investor enthusiasm heading into 2026.
Lam Research Corp (NASDAQ: LRCX)
Lam Research stock has been the standout performer among its peers – boasting a 90% surge in 2025.
But its reliance on rare earths for etching and deposition tools could become a liability.
Techniques like chemical vapor deposition and atomic layer deposition require vibration-free environments – achieved using rare earth-enhanced components.
With China controlling more than 90% of global rare earth processing capacity, any disruption could ripple through LRCX’s production timelines.
In his research note, Lipacis cautioned “it is not clear whether alternative sources or raw materials could be procured,” underscoring the fragility of current supply chains.
For LRCX shares that are already priced for perfection, even minor hiccups could trigger outsized volatility.
KLA Corp (NASDAQ: KLAC)
KLA, known for its metrology and inspection systems, also finds itself in the crosshairs of China’s export crackdown.
These systems demand extreme precision, often facilitated by rare-earth-based magnets that stabilize internal components.
Yttrium, another restricted element, is used to prevent corrosion in these magnets, making it indispensable for long-term reliability.
While KLA stock has climbed over 60% this year, its exposure to rare earth-dependent parts could complicate future product rollouts.
The timing of China’s restrictions – just ahead of key diplomatic meetings – adds another layer of unpredictability.
Investors may need to reassess valuation multiples if supply chain risks begin to materialize.
Note that the Street’s mean target of $1,031 on KLA shares also doesn’t suggest any meaningful upside in them from here.
The week began with a flurry of major developments for the US.
President Donald Trump is set to meet Ukrainian President Volodymyr Zelenskyy amid a renewed show of American support for Ukraine.
Meanwhile, Tesla shares rebounded after Friday’s sharp sell-off, OpenAI and Broadcom unveiled a major chip partnership, and Trump announced a landmark peace agreement involving Israel and Hamas.
On Wall Street, US stocks rallied as investor sentiment recovered from last week’s trade-driven losses.
Trump, Zelenskyy to meet as US considers more aid to Ukraine
The two leaders have held multiple phone calls in recent weeks to discuss air defense systems, long-range weapons such as Tomahawk cruise missiles, and energy cooperation as Russia intensifies its attacks on Ukrainian infrastructure.
Trump has suggested he may authorize the supply of Tomahawk missiles to Kyiv, describing them as “incredible” precision weapons capable of hitting targets up to 1,550 miles away.
While a final decision has yet to be made, the potential move could dramatically alter the dynamics of the Russia-Ukraine conflict. Zelenskyy has welcomed the idea, promising that any long-range weapons would target only military assets.
Russia, however, warned that sending such weapons to Ukraine would be viewed as a major escalation.
Despite the risks, Kyiv continues to count on US support as Russian forces press their offensive and Ukraine steps up counterstrikes deep inside Russian territory.
Tesla shares rebound after sharp sell-off
Tesla stock climbed 5.4% to $435.90 on Monday, recovering from a 5.1% drop at the end of last week.
President Trump later sought to calm investor nerves, saying on Truth Social that “China will be fine” and that neither side wants an economic downturn.
Despite limited reliance on Chinese imports, Tesla remains heavily exposed to China through its Shanghai Gigafactory, which accounted for nearly 40% of global sales in the first half of 2025.
OpenAI and Broadcom announce $10 Billion AI chip partnership
Under the deal, OpenAI will design the accelerators, while Broadcom will handle development and deployment.
OpenAI CEO Sam Altman described the collaboration as a “critical step in building the infrastructure needed to unlock AI’s potential,” while Broadcom CEO Hock Tan called the agreement a major stride “toward the future of AI.”
Trump signs peace deal between Israel and Hamas
President Trump signed a peace agreement on Monday aimed at ending the long-standing conflict between Israel and Hamas.
The signing ceremony took place in Sharm el-Sheikh alongside Egyptian President Abdel Fattah el-Sisi, Turkish President Recep Tayyip Erdogan, and Qatari Emir Tamim bin Hamad Al Thani.
While neither Israel nor Hamas attended the summit, Trump said the deal marks “the end of years of suffering and bloodshed.”
He emphasized that rebuilding Gaza will be the next phase, with international assistance expected to follow.
US stocks rally as trade tensions ease
US stocks surged Monday, rebounding from last week’s sharp declines after Trump reassured investors about trade relations with China.
The Dow Jones Industrial Average jumped 587 points, or 1.4%, while the S&P 500 rose 1.29% and the Nasdaq Composite gained 2.2%.
Tech stocks led the recovery, with Oracle climbing 5% and Nvidia and AMD up 2% and near 1%, respectively.
Broadcom surged 10% following the announcement of its OpenAI partnership.
Trump’s comments that trade with China “will all be fine” appeared to ease market jitters, helping US equities recover a significant portion of Friday’s losses.
A powerful and dramatic divergence has split the Asian markets, as a record-setting, tech-fueled rally in South Korea stands in stark and dramatic contrast to a sharp retreat in Japan, a move triggered by a geopolitical shockwave that has rippled through the global chip sector.
This tale of two markets, one soaring to new heights and the other stumbling, is unfolding against a backdrop of tentative relief as Wall Street rebounds from a brutal, trade-war-induced selloff.
A record-setting day in Seoul
The undisputed star of the session is South Korea, where the benchmark Kospi index has added 1.01 percent to hit an all-time high of 3,646.67.
The rally is a powerful display of the market’s conviction in the country’s technology and industrial titans.
Shares of LG Energy Solution soared over 7 percent after the battery maker projected a 34 percent surge in its third-quarter operating profit, a boom driven by strong US demand for electric vehicles.
At the same time, the heavyweight Samsung Electronics advanced 2.47 percent after it projected a 32 percent rise in its own third-quarter profit, decisively beating analysts’ estimates.
A geopolitical shockwave hits the chip sector
While Seoul celebrates, a very different story is playing out in Tokyo and Shanghai. Japan’s Nikkei 225 has declined 1.34 percent, a slide led by a more than 5 percent plunge in the tech-investment giant SoftBank.
The sell-off was triggered by a report in The Information that its key subsidiary, the British chip designer Arm, was working with OpenAI on its major new partnership with Broadcom, a development that has sent a shiver of uncertainty through the market.
This was compounded by an even more dramatic geopolitical move. Shares of the Shanghai-listed chipmaker Wingtech plunged 10 percent, hitting their daily limit for a second straight session, after the Dutch government announced it had taken control of its Netherlands-based subsidiary, Nexperia.
The move is a significant escalation in the global tech war, a clear sign that Western governments are prepared to take extraordinary measures to secure their technological supply chains.
A cautious pause on Dalal Street
This complex and conflicting global picture is translating into a cautious and muted mood on Dalal Street.
After ending the previous session in the red, the Indian stock market benchmark indices Sensex and Nifty are poised for a flat open on Tuesday.
The trends on the Gift Nifty indicated a flattish start, trading around the 25,319 level, a sign that investors are taking a wait-and-see approach.
On Monday, the Sensex had declined 0.21 percent and the Nifty had fallen 0.23 percent, setting a cautious tone for the start of the new session.
This regional drama is taking place as a fragile sense of calm returns to the broader global market, after President Donald Trump appeared to soften his hardline stance on China over the weekend.
Following a weekend of escalating threats, the president posted on Truth Social, “Don’t worry about China, it will all be fine!”, a comment that was enough to spark a powerful rebound on Wall Street.
Pop Mart share price crashed and formed a bearish flag pattern as the hype surrounding the Labubu collectible faded. It also plunged as analysts turned sour on the company after it tripled in the past few months. This article explores whether the stock is a good buy today.
Why the Pop Mart share price has plunged
Pop Mart stock jumped by over 6% and then pared back some of the losses after Tim Cook, Apple’s CEO, visited one of its stores in China. In a social media post, he noted that he was proud to see a senior designer using its iPad.
Cook’s visit rekindled the interest of the company from investors. It also led some analysts to start thinking of a potential collaboration between the two companies, although no details on this have been shared. Such a collaboration would be good for the company because of the popularity of Apple’s products.
The visit came as analysts turned sour on the Pop Mart share price. In a recent note, JPMorgan analysts slashed their target from H$400 to H$300, citing its elevated valuation and the fact that the Labubu craze was running out of steam.
The most recent data shows that the company has a trailing price-to-earnings (P/E) ratio of 46 and a forward multiple of 25, higher than comparable companies. It is also higher than the Hang Seng Index average.
Sales growth to decelerate
The most recent results showed that the Labubu craze helped the company achieve strong results.
Its numbers showed that its revenue jumped by 204% to RMB 13 billion in the first six months of the year. This growth made it the fastest-growing company in the Hang Seng Index and in China. Its growth momentum was also much higher than that of companies in industries like artificial intelligence and quantum computing.
Pop Mart’s results showed that its operating profit rose by 234% to RMB 9.7 billion, while the net profit soared by 385% to RMB 4.57 billion. The soaring Labubu sales also helped to boost its gross and net profit margin to 70.3% and 33.7%.
In addition to its Labubu product, the company benefited from its other products, especially Molly, SkullPanda, Cry Baby, Hirono, and Dimoo. Its growth was also because of its store openings globally. It added 41 new stores, bringing the total to 571 stores across 18 countries.
The daily timeframe chart shows that the Pop Mart share price peaked at $339 in September, much higher than the year-to-date low of $79.95. It has recently moved below the 50-day moving average, sign that the stock was losing momentum.
Pop Mart share price is now forming a bearish flag pattern, which is made up of a vertical line and a channel. This pattern often leads to more downside over time.
Therefore, the most likely scenario is where the stock makes a bearish breakout and hits the psychological point at $200, which is about 25% below the current level.
A day of significant global developments is underway, as China pushes back against US complaints over its new export curbs, Russia continues to test the limits of Western sanctions, and a new wave of US tariffs officially takes effect.
Here’s your one-stop stand to catch up on all the headlines you may have missed.
China says it is keeping US communication lines open after a new clash over export curbs
China has dismissed complaints from the US that it failed to respond to inquiries over its latest export curbs on rare earths, stating that Beijing has been maintaining communications over trade issues despite recent tensions.
The remarks came after US Treasury Secretary Scott Bessent said Beijing had not responded to American inquiries over the weekend.
“Both sides have been in communications all along under the China-US economic and trade consultation mechanism and we had a working-level meeting just yesterday,” an unnamed spokesperson for the Ministry of Commerce said in a statement.
The ministry defended its decision to implement the curbs as a “legitimate measure.”
Russia steps up its exports of US-sanctioned LNG in a direct test for President Trump
A US-sanctioned liquefied natural gas (LNG) plant in Russia’s arctic region has pressed on with its fuel shipments as Moscow seeks to circumvent Western restrictions and test the resolve of President Donald Trump.
Ship-tracking data compiled by Bloomberg shows the Arctic LNG 2 export plant appears to be loading its 10th shipment since late June.
The plant was sanctioned by the Biden administration in 2023, but the Trump administration has so far held off on tightening measures as it seeks to end the war in Ukraine. Eight shipments of the sanctioned LNG have already arrived at a single port in southern China since August.
Pop Mart shares rise as a visit from Apple’s Tim Cook rekindles investor interest
Shares in the Chinese toymaker Pop Mart International Group Ltd. climbed the most in nearly two months after Apple Inc. CEO Tim Cook’s visit to a Labubu exhibition in Shanghai rekindled investor enthusiasm.
The company’s Hong Kong-listed stock rose as much as 6.1 percent on Tuesday morning after Cook posted on his Chinese social media platform Weibo that he loved seeing how the Labubu designer Kasing Lung uses the iPad Pro to create his characters.
The high-profile visit has “sparked market imagination on a potential collaboration, which could open up new growth avenues for the company,” said Shen Meng, a director at the investment firm Chanson & Co.
New US tariffs on lumber and furniture have now officially taken effect
The US is now officially collecting new tariffs on imported timber, lumber, kitchen cabinets, bathroom vanities, and upholstered furniture, a move that threatens to raise the cost of home renovations.
The import taxes—initially set at 25 percent for cabinets and furniture and 10 percent for lumber—took effect on Tuesday. At President Donald Trump’s direction, most of these tariffs are set to rise even higher in the new year.
The move is the latest in Trump’s broad strategy of erecting trade barriers to try to drive manufacturing back to the US.
Europe is fighting for AI independence to avoid becoming a ‘tech colony’
European leaders are moving with a renewed sense of urgency to claim their piece of the global AI boom, as fears grow that the continent is at risk of becoming a “tech colony” of the United States and China.
From French President Emmanuel Macron to British Prime Minister Keir Starmer, heads of state have been making splashy pledges to invest in massive data centers. Europe’s scarce tech giants, SAP SE and ASML Holding NV, have also recently committed billions of euros to homegrown AI startups.
The push comes as officials are growing increasingly worried that Europe’s access to a vital technology is vulnerable to Donald Trump’s trade wars and whims.
Textile exporters from India have been on the hunt for new customers in Europe and offering discounts to existing ones in the US in order to minimise the impact from steep US tariffs of 50%, according to a Reuters report.
In August, US President Donald Trump significantly increased tariffs on Indian imports, imposing some of the highest duties on any trading partner.
This move impacted a broad range of Indian goods and produce, including garments, jewellery, and shrimp, raising concerns about the potential economic repercussions for both countries.
Impact of US tariffs
The decision to double tariffs was part of a larger strategy by the Trump administration to address perceived trade imbalances and protect domestic industries, but it led to considerable strain on the trade relationship between the US and India.
A Mumbai-based garment exporter, revealed that his company’s strategic shift towards diversifying its market presence, according to the report.
The company is actively prioritising expansion into European Union markets.
He expressed optimism that an early trade deal between India and the EU would significantly boost India’s garment shipments, providing a crucial advantage for exporters like his firm.
This proactive approach underscores the industry’s keen interest in leveraging potential trade agreements to unlock new growth opportunities and strengthen India’s position in the global textile landscape.
India-EU trade
Trade discussions between India and the European Union have reached a critical juncture, with both sides intensifying their efforts to finalize a free trade pact by the end of the year.
This ambitious deadline underscores the political will and economic imperative driving these negotiations.
The proposed Free Trade Agreement (FTA) is expected to cover a wide range of sectors, aiming to boost bilateral trade and investment.
Key areas of discussion include tariffs on goods, services trade, intellectual property rights, investment protection, and sustainable development.
Both India and the EU stand to gain significantly from such an agreement.
Mutual benefits and challenges
For India, an FTA with the EU, one of its largest trading partners, would open up new markets for its agricultural products, textiles, and manufactured goods, and attract further European investment.
Conversely, European businesses would benefit from easier access to India’s vast and growing consumer market, as well as reduced tariffs on their exports, including machinery, chemicals, and pharmaceuticals.
The EU is India’s largest trading partner for goods, with two-way trade of $137.5 billion in the fiscal year to March 2024, for an increase of nearly 90% over the past decade.
The EU and India’s two-way trade for goods reached $137.5 billion in the financial year ending March 2024. This was a rise of nearly 90% over the last 10 years.
The EU is India’s largest trading partner for goods.
However, the path to a comprehensive agreement is not without its challenges. Sticking points often arise concerning issues such as market access for certain sensitive products, regulatory convergence, and labor and environmental standards.
Exporters adapt to new realities
Textile exporters indicate that Indian exporters are intensifying their efforts to comply with stricter EU regulations concerning chemicals, product labeling, and ethical sourcing.
Rahul Mehta, chief mentor of the Clothing Manufacturers Association of India, stated that exporters are enhancing their production facilities to comply with these standards.
Mehta further stated that exporters are also eager to lessen their reliance on the US.
In the fiscal year ending March 2025, the US was the top destination for Indian textile and apparel exports.
India’s total exports in this sector were approximately $38 billion, with nearly 29% of that market share attributed to the US.
To retain their US customers, some exporters, such as Mumbai-based Creative Group, have begun offering discounts. According to Creative Group’s chairman, Vijay Kumar Agarwal, 89% of their total shipments are US exports.
Agarwal said if US tariffs persist, the company could lay off 6,000 to 7,000 of its 15,000 employees. He added that after a six-month period, the company might explore relocating production to Oman or neighboring Bangladesh.
On Tuesday, the US and China are set to impose additional port fees on ocean shipping companies.
This move will affect the transport of various goods, from holiday toys to crude oil, turning the high seas into a significant battleground in the trade war between the world’s two largest economies, Reuters said in a report.
China announced it has begun levying special charges on US-owned, operated, built, or flagged vessels, with an exemption for Chinese-built ships.
China outlined specific exemption provisions, including for empty ships entering Chinese shipyards for repair, in details released by state broadcaster CCTV on Tuesday.
China will collect additional port fees at the initial port of entry for a single voyage or for the first five voyages within a year. These fees will be collected annually, following a billing cycle that begins on April 17, according to the report.
The Biden administration previously investigated and concluded that China’s unfair policies and practices led to its dominance in the global maritime, logistics, and shipbuilding industries.
This finding paved the way for penalties that the Donald Trump administration announced earlier this year.
Retaliatory measures
These fees on China-linked ships are intended to loosen China’s control over the global maritime industry and strengthen US shipbuilding.
The US is set to implement new fees on October 14.
Analysts predict that China’s COSCO a container carrier, will bear the brunt of these charges, potentially facing nearly half of the estimated $3.2 billion cost in 2026 for that specific segment.
Last week, China announced retaliatory port fees on US-linked vessels, effective the same day.
According to Jefferies analyst Omar Nokta, this measure would impact 13% of the global crude tanker fleet and 11% of container ships.
“This tit-for-tat symmetry locks both economies into a spiral of maritime taxation that risks distorting global freight flows,” Athens-based Xclusiv Shipbrokers Inc said in a research note.
Global shipping industry braces for impact
A consultant based in Shanghai, who advises international businesses on trade with China, suggested that the new fees might not significantly disrupt the industry.
Any increased costs, the consultant added, would likely be reflected in higher prices, according to the Reuters report.
What are we going to do? Stop shipping? Trade is already pretty disrupted with the US, but companies are finding a way.
In response to China’s restrictions on critical mineral exports, Trump announced on Friday that he would impose new 100% tariffs on Chinese goods and implement export controls on “any and all critical software” by November 1.
Hours later, administration officials issued a warning: nations supporting the United Nations’ International Maritime Organization’s proposal to decrease greenhouse gas emissions from ocean shipping this week could face sanctions, port bans, or punitive vessel charges.
China has publicly endorsed the IMO plan.
Xclusiv Shipbrokers Inc added:
The weaponisation of both trade and environmental policy signals that shipping has moved from being a neutral conduit of global commerce to a direct instrument of statecraft.
Aston Martin share price has come under pressure since its initial public offering as the company has continued burning cash. AML was trading at 64.5p on Monday, down by over 90% from its highest point after its initial public offering. So, is it safe to buy this vehicle stock?
Aston Martin Lagonda is the real burning platform
Tufan Erginbilgic, the highly successful CEO of Rolls-Royce Holdings, described his company as a burning platform shortly after he became CEO in 2023. His view was that the company was incinerating cash at a rapid pace.
Since then, he has turned around the company and made it one of the best-performing players in the FTSE 100 Index. It has also become a company with a valuation of over $128 billion, making it the biggest industrial firm in the UK.
The term ‘burning platform’ is the best one to describe Aston Martin Lagonda, a company that makes popular and highly expensive vehicles, including those of Aston Martin fame.
Data shows that all Aston Martin vehicles sold since 2014 have lost the company money. The average cash lost in this period was about £42,000, meaning that the company has lost over £2.8 billion.
The huge subsidy has been funded by equity and debt. Data shows that the shares outstanding jumped to over 1.01 billion, up from 310 million in 2021.
It will likely need more capital in the coming months, with analysts at JPMorgan predicting that it will burn £360 million this year and £230 million in the first half of last year. JPM sees the company raising at least £200 million in the next few months.
The most recent trading update showed that the company delivered 1,430 wholesale units in the third quarter. These units were much lower than what the company was expecting. It blamed the fall to weaker-than-expected demand from the United States as Donald Trump’s tariffs made its vehicles more expensive.
The management also warned that the company will not meet its target for the year and the fourth quarter.
Its first half results showed that the company’s revenue plunged by 25% to £454 million, while its gross profit and margin tumbled to £126 million and 27.9%, respectively. Its EBIT was minus £121 million, a big drop from the previous £99 million.
Aston Martin stock price technical analysis
AML stock price chart | Source: TradingView
The weekly chart shows that the Aston Martin share price peaked at 850p in 2021 to the currently 64.55p. Its attempts to recover found substantial resistance at 395p, its highest point in June 2023.
AML stock has remained below the 50-week and 100-week Exponential Moving Averages (EMA). It has also formed a bearish flag pattern and an inverse cup-and-handle pattern.
Therefore, the most likely situation is where the stock continues falling, with the next point to watch being at 50p. A move above the resistance at 87.75 will invalidate the bearish outlook.
A recent Bloomberg report states that LG Electronics India Ltd. made a striking debut in Mumbai trading on Tuesday, with its shares jumping 50% from the issue price to open at ₹1,715.
The surge lifted its market capitalisation to about $13 billion, surpassing that of its South Korean parent, LG Electronics Inc.
The strong listing has not only set a benchmark for Indian IPOs but also underscored investor confidence in India’s growing consumer market.
Coming shortly after Tata Capital’s modest 1.4% debut, LG’s performance signals a fresh wave of optimism in India’s primary market, which has drawn global investors in record numbers.
India’s IPO market gains global attention
According to Bloomberg, the success of LG India’s initial public offering marks another milestone in what is shaping up to be India’s most active IPO year.
With proceeds expected to exceed $5 billion in October alone, India continues to attract global capital, driven by a booming middle class and rising consumer demand.
During its public offering, LG India raised ₹116 billion ($1.3 billion) after bids exceeded available shares by 54 times.
The offering drew heavyweight institutional investors, including sovereign wealth funds from Abu Dhabi, Norway, and Singapore, along with major asset managers such as BlackRock Inc. and Fidelity International Ltd.
Their participation highlights growing confidence in India’s manufacturing and consumer sectors, areas that have become key pillars of the country’s economic growth story.
Global funds turn to India amid shifting capital flows
LG India’s blockbuster listing contrasts sharply with its earlier decision to suspend IPO plans and lower deal expectations earlier this year.
The revival reflects a shift in sentiment among global investors seeking exposure to fast-growing economies as Western markets face slowing growth and inflation concerns.
Bloomberg reports that Jefferies Financial Group recently noted that India’s primary market is “primed for a sharp rebound,” estimating that up to $18 billion could be raised in the second half of the year.
So far, IPO proceeds in 2025 have already crossed $15 billion, with LG and Tata’s listings pushing totals close to last year’s record of $21 billion.
This momentum demonstrates India’s emergence as a key destination for equity capital, particularly as global funds rebalance away from China and other slower-growth regions.
The strong domestic demand, combined with foreign inflows, has created favourable conditions for companies planning listings in sectors ranging from finance to technology and manufacturing.
Analysts’ cautious optimism on valuation
Despite the excitement, analysts have adopted a balanced view on LG India’s valuation. Motilal Oswal Financial Services set a target price of ₹1,800, projecting that the stock could continue to trade at higher valuation multiples given its strong fundamentals.
On the other hand, Sharekhan Ltd. considered the stock fairly valued at 35 times last fiscal year’s earnings, suggesting limited room for further gains in the near term.
Bloomberg notes that SBI Securities described LG India as having a “superior return profile” compared to its peers, citing its diversified product range and robust margins.
However, analysts have also warned that the broader market’s performance could influence short-term investor sentiment, especially with a crowded IPO calendar in the weeks ahead.
Upcoming listings signal continued market strength
October’s line-up of IPOs positions India to post its strongest month ever for equity fundraising. Upcoming issues include Lenskart Solutions Ltd., Groww’s parent Billionbrains Garage Ventures Ltd., and ICICI Prudential Asset Management Co.
Each of these listings is expected to test investor appetite further as companies rush to capitalise on bullish sentiment.
For investors, the remarkable debut of LG India provides not only confidence in the country’s IPO ecosystem but also a glimpse into India’s growing clout in global equity markets.
The listing’s success underscores how international and domestic capital are converging in India, fuelling what analysts see as a long-term structural story of growth, consumption, and industrial expansion.
