Budget 2026 Lifts Textile Stocks: Gokaldas Exports, Trident, Welspun, KPR Mill Rally Up to 8%

Market Performance: Textile Stocks React Sharply After Budget 2026

The Union Budget 2026 set the tone for textile stocks on Dalal Street.

As the Finance Minister unveiled new proposals for the labour-intensive textile sector, several listed textile companies saw strong buying interest. The market reaction was swift and visible across mid-cap and small-cap names.

Stocks linked to textiles moved higher after the government announced plans focused on mega textile parks and value addition in technical textiles. The move reflected how closely market sentiment tracks policy signals, especially in sectors dependent on scale, employment, and infrastructure.

By the end of the trading session, multiple textile stocks were trading sharply higher, with gains stretching up to 8%.

Budget 2026 Brings Focus Back to Textiles

During her Budget 2026 speech, Finance Minister Nirmala Sitharaman outlined a fresh, integrated programme for the textile sector.

The proposal focused on building long-term capacity rather than short-term incentives. At the heart of the announcement was the idea of mega textile parks, designed to support value addition, especially in technical textiles.

This policy direction immediately caught the market’s attention.

Textile companies, particularly those with large manufacturing footprints and export exposure, reacted positively as investors digested the broader intent behind the announcement.

Stock Price Movement: Who Gained and By How Much

Several textile stocks posted notable gains following the Budget announcement:

• Trident's share price jumped as much as 8.38%

• Vardhman Textiles shares rallied 7.36%

• Pearl Global Industries' stock climbed 6.18%

• KPR Mill's stock price surged 5.91%

• Gokaldas Exports shares spiked 5.68%

• Welspun Living shares rose 4.16%

The price action highlighted how policy-driven news can quickly shift sentiment across an entire sector.

What the Government Announced for the Textile Sector

The Finance Minister described the proposal as an integrated programme built around three core pillars for the labour-intensive textile industry.

Each component addressed a different part of the value chain.

1. National Fibre Scheme

The first pillar focuses on strengthening fibre availability across categories.

According to the Finance Minister, the goal of the National Fibre Scheme is to:

• Achieve self-reliance in natural fibres such as silk, wool, and jute

• Support man-made fibres

• Encourage the use of new industrial-age fibres

This approach links raw material security with long-term industrial growth.

2. Textile Expansion and Employment Scheme

The second pillar aims at upgrading existing textile clusters.

This scheme seeks to modernise traditional textile hubs by offering:

• Capital support for machinery

• Technology upgrades

• Common testing centres

• Certification infrastructure

The focus is on improving productivity while strengthening employment-linked manufacturing.

3. National Handloom and Handicraft Programme (NHHP)

The third component is the National Handloom and Handicraft Programme.

The NHHP is designed to:

• Integrate and strengthen existing schemes

• Provide targeted support to weavers and artisans

• Ensure continuity across handloom and handicraft initiatives

This pillar connects policy support with grassroots participation in the textile ecosystem.

Company Details: Stocks in Focus After Budget 2026

Companies such as Gokaldas Exports, Welspun Living, KPR Mill, Trident, Vardhman Textiles, and Pearl Global Industries came into focus as the market responded to the Budget proposals.

These stocks represent different segments of the textile value chain, ranging from yarn and fabric to apparel and home textiles.

Their movement reflected broader sector sentiment rather than company-specific announcements.

Summary: Why Textile Stocks Moved After Budget 2026

• Budget 2026 introduced a structured, three-pillar programme for textiles

• The proposal included mega textile parks and a focus on technical textiles

• Stocks across the textile sector rallied, with gains of up to 8%

• The announcement highlighted the government's intent toward scale, modernization, and fibre self-reliance

• Market sentiment shifted quickly in response to policy direction

The session underscored that budget announcements continue to play a decisive role in shaping short-term market moves, especially in policy-sensitive sectors such as textiles.   

Source: Livemint