Market Performance: Textile Stocks Shine Amid Trade Optimism
Textile stocks were in focus for the second day running on Wednesday, February 4. Following strong gains in the previous session, the market sentiment remained upbeat as the India–US trade deal announcement reinforced investor confidence in export-oriented sectors.
- Gokaldas Exports soared another 20% to hit a high of ₹832.85.
- Indocount Industries rose 20% to ₹343, building on the previous day’s gains.
- Faze Three climbed 20% to ₹529.90.
- Other textile stocks also saw notable gains:
- Pearl Global: up 10%
- Trident: up 4.5%
- Welspun Living: up 4.3%
- KPR Mill: up 2.5%
The rally highlighted renewed investor interest in India’s textile sector, particularly companies with significant export exposure.
Main News: India–US Trade Deal Lifts Export Prospects
After several rounds of negotiations, the India–US trade deal finally came into effect, improving earnings visibility for textile exporters. The pact is expected to benefit companies operating in labor-intensive industries, where India has a competitive edge.
Key points of the trade deal:
- Tariff reduction: US tariffs on Indian imports cut from 25% to 18%.
- Additional duty removal: The 25% punitive duty linked to India’s crude oil imports from Russia has been lifted.
This new structure gives India a competitive advantage compared with other major Asian exporters, including China, which faces tariffs of up to 37%. For the textile sector, the deal removes a significant overhang and supports stronger export demand.
Company Highlights: Textile Stocks in Focus
Several companies are directly benefiting from the improved trade environment:
- Trident – recorded gains of 4.5%, reflecting strong investor sentiment.
- KPR Mill – up 2.5%, adding to the sector-wide momentum.
- Kitex Garments – nearly 90% of revenues linked to the US market, poised to see improved utilisation as demand picks up.
- Pearl Global – rose 10%, reflecting export competitiveness.
- Welspun Living – gained 4.3%, riding the trade optimism wave.
The trade deals not only boost competitiveness but also enhance order visibility for textile exporters, particularly in key markets like the US, EU, and UK.
Export Dynamics: India’s Textile Advantage
India is among the top textile-exporting countries, accounting for approximately 4% of global textile and apparel exports. Major destinations include:
- United States
- European Union
- United Kingdom
Together, these markets account for over 50% of India’s textile exports. The new trade agreements position India to compete effectively against countries like Bangladesh and Vietnam, which have traditionally captured global buyers’ attention.
- FY26 exports to the US: $5.1 billion
- FY25 exports to the US: $8.3 billion (impacted by previous higher tariffs)
India’s FTAs and BTAs with these regions further strengthen the sector’s market access and cost competitiveness.
Summary: Textile Sector Gains Momentum
The combination of the India–US trade deal, tariff relief, and India’s growing export footprint has propelled textile stocks into a strong rally. Stocks like Trident, KPR Mill, and Kitex are among the biggest beneficiaries, alongside other export-oriented players like Gokaldas Exports, Indocount Industries, and Pearl Global.
This surge underscores the sector’s resilience and the importance of policy support in shaping market sentiment. For investors and market watchers, the textile space is now firmly in focus as a key growth driver.
Source: Livemint
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