Market Performance: Textile Stocks Take the Lead
The stock market today saw sharp action in textile counters.
Names like Kitex, Trident, and KPR Mill share price jumped sharply in intraday trade, with gains touching up to 20%.
The rally followed a major policy trigger overnight.
Markets quickly priced in fresh optimism for export-heavy sectors.
Textiles, a labour-intensive segment, stood out as one of the strongest performers in Tuesday’s session.
Several stocks hit upper circuits or traded near day highs as volumes picked up through the day.
Main News: India–US Trade Deal Sparks Sector-Wide Momentum
The trigger behind the move was the India–US trade agreement announced late Monday.
Under the agreement:
- Reciprocal tariffs on Indian goods reduced to 18% from 25%
- Additional 25% duty linked to Russian crude purchases removed
- The deal is effective immediately
The trade decision was announced after a late-night discussion between US President Donald Trump and Prime Minister Narendra Modi.
For export-oriented sectors, especially textiles, this translated into immediate sentiment relief.
Higher tariffs had earlier slowed growth and order flow across the value chain.
Stock-Specific Moves: Who Gained How Much
Textile stocks reacted swiftly to the news.
Key movers in the session included:
- Kitex Garments: Up to 20%
- Indo Count Industries: Up to 20%
- Welspun Living: Gained up to 18%
- KPR Mill share price: Up to 18%
- Trident: Up to 18%
- Arvind
- Bombay Dyeing
- Vardhaman Textiles
Buying interest was broad-based across apparel, home textiles, and integrated manufacturers.
Why the Deal Matters for Indian Textiles?
The United States remains India’s largest textile export destination.
Key export data:
- US accounts for 28% of India’s textile and apparel exports
- Export value: $11 billion
- Total sector exports: $38 billion
- Period: Financial year ended March 2025
Earlier, steep tariffs had hit shipments hard.
According to survey data cited in public reports:
- US textile shipments fell over 50%
- Time period: October–December compared to July–September
- Nearly one-quarter of exporters were impacted
Lower tariffs now ease pricing pressure and improve competitiveness.
India’s Global Tariff Advantage Improves
The revised tariff rate also improves India’s standing versus peers.
Tariff comparison:
- India: 18%
- Bangladesh, Sri Lanka, Taiwan, Vietnam: 20%
- Indonesia, Malaysia, Thailand, Philippines, Pakistan: 19%
This shift narrows the gap and strengthens India’s export positioning.
India has also recently signed a free trade agreement with the European Union, its second-largest textile export market.
Together, these developments reset the export landscape for the sector.
Sector Context: Relief After Two Difficult Years
The textile sector has spent the past two years dealing with:
- Inventory destocking
- Weak global demand
- Margin pressure
Against this backdrop, the current development is being viewed as structural relief, not just a one-day sentiment move.
The market response reflects that recalibration.
Company Details Snapshot
Kitex Garments
Focused on infantwear exports with global exposure.
Trident
Presence in home textiles with a diversified export footprint.
KPR Mill
An integrated textile player spanning yarn, fabric, garments, and retail.
The rally was not limited to one sub-segment, indicating sector-wide participation.
Summary: What the Market Is Signalling?
- Textile stocks rallied up to 20% in the stock market today
- Triggered by immediate tariff cuts under the India–US trade deal
- US tariffs reduced to 18% from 25%
- India’s textile exports worth $11 billion to the US stand to benefit
- Sector gains came after two years of demand and margin pressure
The sharp move in Kitex, Trident, and KPR Mill share price reflects how quickly markets respond when policy tailwinds align with sector fundamentals.
For now, textiles are firmly back on the market’s radar.
Source: Livemint
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