Textile Stocks Surge: Gokaldas Exports, KPR Mill, Vardhman Textiles, Welspun Living, Alok Industries and Raymond Share Price Jump After US Tariffs on Bangladesh

Market Performance

Indian textile stocks surged significantly in early trade on Tuesday, July 8, following the United States' announcement of a 35% tariff on imports from Bangladesh, which made Indian textile exports comparatively more attractive.

• Gokaldas Exports surged by 7.8%, trading at ₹970
• Vardhman Textiles jumped 7.4%, reaching ₹535.75
• KPR Mill rose 2%, priced at ₹1,181.3
• Welspun Living also gained 2%, trading at ₹145.65
• Alok Industries and Raymond registered notable gains during the session

This rally occurred amid a broader sentiment of optimism for India's textile export potential in global markets, driven by the imposition of high duties on Bangladeshi goods.

Main News

The US decision to impose a 35% tariff on Bangladeshi textile imports has provided a substantial boost to Indian textile stocks. These tariffs create a competitive advantage for Indian manufacturers, who were previously priced out by cheaper Bangladeshi products.

• The latest tariff rate is slightly lower than the 37% announced in April, but still much higher than the base rate of 10%
• The new tariffs are scheduled to come into effect from August 1
• Indian players are poised to benefit significantly, particularly in the ready-made garment (RMG) sector.

Currently, the US RMG market is dominated by:

• Vietnam – 19% market share
• Bangladesh – 9% market share
• India – 6% market share

This move could help India close the gap and enhance its presence in the US textile market.

Company-Wise Share Price Movement

Gokaldas Exports

• Share Price: ₹970
• % Increase: 7.8%
• Gokaldas was among the top gainers, reflecting its heavy reliance on textile exports to the US market.

KPR Mill

• Share Price: ₹1,181.3
• % Increase: 2%
• The modest gain indicates cautious optimism among investors despite solid fundamentals.

Vardhman Textiles

• Share Price: ₹535.75
• % Increase: 7.4%
• The company benefited from renewed confidence in Indian textile competitiveness.

Welspun Living

• Share Price: ₹145.65
• % Increase: 2%
• Welspun's diversified textile portfolio helped push its stock upward.

Alok Industries & Raymond

• While exact figures were not detailed, both stocks recorded impressive gains amid improved export outlooks.

Global Context

In addition to tariffs on Bangladesh, the US government, under President Donald Trump, announced a slew of duties affecting 14 countries, mainly across Asia:

• Japan & South Korea: 25% tariffs
• Myanmar & Laos: Flat 40% tariffs
• Cambodia & Thailand: 36% tariffs

Trump mentioned that the US is nearing a trade deal with India, which could further influence bilateral trade in the textile segment. However, the finalised terms of such a deal are yet to be seen.

Summary of the Article

The imposition of 35% tariffs on Bangladeshi textiles by the US has sparked a strong rally in Indian textile stocks, especially those with large export portfolios.

Gokaldas Exports, Vardhman Textiles, KPR Mill, Welspun Living, Alok Industries, and Raymond all witnessed upward momentum, with Gokaldas and Vardhman showing notable gains exceeding 7%.

The change in global trade dynamics, driven by US tariffs, is reshaping competitiveness across the textile industry. With Indian exports now better positioned in key markets like the US, domestic textile firms are likely to witness improved volumes in the coming months, provided current conditions remain favourable.