Market Performance: Textile Stocks Turn Red
Textile stocks that rallied sharply earlier lost momentum in today’s stock market. On February 10, selling pressure returned as investors reassessed the global trade picture.
Shares of Gokaldas Exports dropped over 5%, slipping to around ₹796.45. KPR Mill and Arvind declined by more than 4% each, while the Pearl Global Industries share price was down over 3.5% during intraday trade.
This shift came after optimism around the India–US trade framework gave way to fresh concerns linked to developments between the US and Bangladesh.
Main News: Why Textile Stocks Are Falling Today?
The trigger lies in a new trade agreement between the United States and Bangladesh. Under this deal, the US has agreed to create a mechanism that allows certain Bangladeshi textile and apparel products to enter the American market at a zero reciprocal tariff rate.
A key part of this mechanism is volume-based.
The allowed volume of zero-tariff imports will be linked to US textile exports, such as cotton and man-made fibre inputs, going into Bangladesh.
In simple terms, select Bangladeshi clothing exports may now reach the US market without facing any reciprocal tariff, changing the competitive balance for global textile exporters.
Tariff Comparison: India vs Bangladesh
The recent India–US trade framework had initially lifted sentiment across Indian textile stocks. Under this framework:
- US reciprocal tariffs on Indian textile exports are set to reduce
from 50% to 18% - This reduction applies to textiles, apparel, and related categories
However, the fresh US–Bangladesh agreement altered the picture.
Here’s how the tariff structure looks now:
- Indian textile exports to the US: 18% tariff
- Bangladeshi textile exports (select volumes): 0% reciprocal tariff
- Overall US tariff on Bangladeshi exports: 19%
While India enjoys a sharp cut from earlier levels, Bangladesh securing zero tariffs on specific apparel volumes has raised concerns of tougher competition in the US market.
Company Impact: Why Stocks Like Gokaldas, KPR Mill, Arvind Slid?
Companies such as Gokaldas Exports, KPR Mill, Arvind, and Pearl Global Industries are deeply linked to global apparel trade, especially exports to the US.
Markets reacted as investors weighed two realities:
- India gains tariff relief versus earlier levels
- Bangladesh gains a sharper edge on pricing due to zero tariffs
This reassessment led to profit booking in textile stocks that had rallied sharply in previous sessions.
The result: a broad-based decline across export-oriented textile names.
India–US Trade Framework: The Bigger Context
On February 6, India and the US unveiled a framework for an interim reciprocal trade agreement. The framework reaffirmed commitment to the larger Bilateral Trade Agreement (BTA), which was launched earlier in February 2025.
As per the framework:
- The US agreed to cut tariffs to 18% on Indian exports across
textiles, apparel, leather, footwear, plastic, rubber, chemicals,
home décor, artisanal products, and select machinery - The agreement was described as a historic milestone, focused on
balanced and mutually beneficial trade
While this framework remains positive for India in isolation, the simultaneous US–Bangladesh move shifted near-term market sentiment.
Summary: What Drove Today’s Textile Stock Move?
The fall in textile stocks today was sentiment-driven, not company-specific.
- Optimism from the India–US deal cooled after the US–Bangladesh agreement
- Zero tariff access for select Bangladeshi apparel raised competition fears
- Stocks like Gokaldas Exports, KPR Mill, Arvind, and Pearl Global Industries saw selling pressure after a sharp earlier rally
- Markets are now recalibrating expectations in light of the changing global tariff landscape
In today’s stock market, the story wasn’t about growth projections or numbers. It was about relative advantage, tariffs, and how global trade equations can quickly reshape investor mood—especially in export-heavy sectors like textiles.
Source: Moneycontrol
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