Gokaldas, Kitex, Trident, Arvind, Alok Industries Shares Jump After Budget Boost for Textile Sector

Shares of India’s leading textile companies rallied strongly on Sunday as the Finance Minister outlined initiatives to strengthen the labour-intensive textile sector. Stocks surged up to 8% in intra-day trade on the BSE, reflecting renewed investor optimism in the segment.

Market Performance

The BSE Sensex rose modestly by 0.4% in Sunday’s session, while textile stocks outperformed the broader market:

• Kitex Garments: ₹185, up 8%
• Trident: ₹28.17, up 8%
• KPR Mill: ₹919.20, up 6%
• Gokaldas Exports: ₹581.90, up 5%
• Arvind: ₹328, up 5%
• Alok Industries: ₹15.83, up 5%

At 11:17 AM, these stocks recorded intra-day gains in the range of 3–4%, well above the modest market movement. Despite this rally, most textile stocks remain below their 52-week highs, having lost as much as 50% due to past operational challenges and international trade barriers.

Why Textile Stocks Are in Focus?

Finance Minister Nirmala Sitharaman highlighted several key measures during her Budget 2026 speech aimed at reviving the textile sector:

• Mega Textile Parks: Dedicated hubs to focus on technical textiles and value addition.
• Integrated Textile Programme: A unified framework combining five existing schemes for better efficiency and coordination.

These initiatives are expected to provide a structural boost to textile manufacturing, enhancing competitiveness and improving operational efficiency across the sector.

India-EU Free Trade Agreement

Another major development fueling optimism is the India-European Union Free Trade Agreement (FTA), finalized after more than a decade of negotiations. Key points include:

• Zero Tariffs on Indian Textiles: Once operational, the FTA will eliminate import duties on Indian textile and apparel products in the EU.
• Global Competitiveness: Currently, Indian exporters face 10–12% tariffs in the EU, putting them at a disadvantage compared to Bangladesh, Turkey, Vietnam, and Pakistan.
• Market Share Recovery: India had lost ground in major EU textile import categories between 2018–2024, with Bangladesh and Pakistan gaining. The FTA could reverse these trends.

This trade agreement, combined with government support, could act as a major boost for exporters, improving price competitiveness and creating opportunities for volume growth in the coming quarters.

Company Highlights

• Kitex Garments: Leading the intra-day rally at ₹185, reflecting strong investor interest.
• Trident: Rose 8% to ₹28.17, supported by the sector-wide optimism.
• KPR Mill: Increased 6% to ₹919.20, marking steady gains.
• Gokaldas Exports, Arvind, Alok Industries: Each up 5%, showing a broad-based sectoral recovery.

Summary

Sunday’s session showcased a clear market response to government measures supporting India’s textile sector. With Budget proposals for mega textile parks, an integrated programme, and a historic India-EU FTA removing import tariffs, textile stocks gained strong momentum.

• Stock-specific gains were well above the Sensex movement.
• Most textile stocks remain significantly below their 52-week highs, indicating room for recovery.
• Government initiatives and international trade deals provide structural support for medium- to long-term growth.

As the market digests these developments, investors are closely watching the sector for follow-through in the coming days.

Source: Business Standard