Market Performance
The India-US trade deal continued to shape market mood on Wednesday, keeping export-focused stocks firmly in the spotlight.
Shares of several textile and seafood exporters extended their rally for a second straight session. The move came as investors reacted to improved trade visibility after the deal, especially for companies with high exposure to the US market.
The rally followed a sharp rebound from recent pressure, when higher US tariffs had weighed on export-oriented names.
Main News: Export Stocks Extend Gains
Export-heavy stocks saw strong follow-through buying, with gains running into double digits across segments.
Key highlights from the session:
- Gokaldas Exports surged 20%, hitting an intraday high of ₹832.85 on the NSE
- The stock opened 12.15% higher and has climbed over 41% in the last two sessions
- Kitex Garments jumped close to 12%
- Indo Count Industries rose around 11%
- KPR Mill added 2.62% to trade at ₹1,014.90
- Arvind moved up by more than 2%
The renewed strength comes after these stocks had earlier corrected sharply following the US decision to raise tariffs on Indian exports.
Tariff Relief Improves Sentiment
At the centre of this rally is clarity around tariffs under the India-US trade deal.
- US reciprocal tariffs on Indian exports were reduced to 18%, from 50%
- Competing Asian exporters continue to face tariff levels ranging between 19% and 30%
This shift has changed the near-term sentiment for Indian exporters, especially in textiles and apparel, where pricing and volume competitiveness matter the most.
Seafood Exporters Also Join the Rally
The positive mood was not limited to textiles.
Shrimp and seafood exporters also witnessed heavy buying interest:
- Avanti Feeds gained around 12%
- Apex Frozen Foods climbed nearly 10%
- Coastal Corporation hit the 5% upper circuit
These companies generate a large part of their revenue from the US market, making them direct beneficiaries of the improved trade environment.
Company Details: US Market Exposure
The strength in these stocks reflects their strong export linkages, especially to North America.
Key revenue exposure details:
- Apex Frozen Foods
- The US contributed 53% of export sales in FY25
- Avanti Feeds
- North America accounted for 65.4% of total sales in Q1 FY25
Such high exposure means even small changes in trade terms can significantly impact volumes and profitability.
Why the Market Is Reacting This Way?
The market response appears driven by three clear factors:
- Relief after months of tariff-related pressure
- Improved cost competitiveness for Indian exporters
- High revenue dependence on the US market for select companies
Together, these elements have shifted sentiment swiftly, leading to a sharp short-term re-rating in export-oriented stocks.
Summary
The India-US trade deal has become a key trigger for export-focused stocks, pushing textiles and seafood exporters higher for the second session in a row.
With tariff relief now in place and the US remaining a critical revenue market, investor interest has clearly picked up across select names. The sharp gains reflect changing sentiment rather than fresh expectations, as markets adjust to a more favourable trade backdrop.
As trading unfolds, export-linked stocks are likely to remain sensitive to further developments around global trade and demand trends tied to the US economy.
Source: Moneycontrol
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