Textile stocks jump back up

Shares of export-oriented textile companies extended gains today, with several counters surging to double-digit advances as investors priced in relief from the latest India–US trade announcement.

Gokaldas Exports and K.P.R. Mill were among the sharp movers, with multiple textile names rising up to about 20% in the session, alongside strong moves in Kitex Garments, Trident, Arvind and Alok Industries.

The trigger was a fresh easing of tariff-related uncertainty after Donald Trump said the United States would lower the reciprocal tariff on Indian goods to 18%, and also remove the additional duty linked to India’s purchases of Russian oil, following an understanding between the two sides.

For Indian textile exporters, the market’s read-through is that a lower US tariff rate improves competitiveness and pricing visibility in a key destination market at a time when the sector had been grappling with demand uncertainty and margin pressure under a higher-tariff regime.

The rally has also been helped by “back-to-back” positives, including Budget measures aimed at scaling textiles (including plans around mega textile parks and an integrated textile programme) and the recently signed India–EU trade agreement, which investors expect to be supportive for apparel and textile exports once operational.

However, the move is still headline-driven and could remain volatile until there is greater clarity on implementation and the fine print, while tariffs at 18% are still meaningful and global competition in textiles remains intense.

Investors are likely to watch the pace of order normalisation from US buyers, currency moves, and management commentary on realisations and utilisation over the next few quarters to assess how much of the re-rating sustains beyond the initial relief rally.