Textile Stocks Rally on Hopes of India-US Tariff Breakthrough

Indian textile stocks—including Welspun India, Indo Count, and KPR Mill—surged as much as 6% today, thrilling market participants and signaling renewed optimism for the sector.

The key driver was fresh momentum in ongoing US-India trade talks. Recent positive statements from both governments have raised hopes that the punitive tariffs imposed by the US in August—doubling import duties on several Indian textiles—could soon be eased. These tariffs had heavily squeezed Indian exporters, leading to several weeks of sector underperformance.

Today’s rally came after officials hinted at a possible diplomatic breakthrough and negotiation reset, prompting investors to anticipate a sharp recovery in export orders and profit margins. This optimism was further boosted by supportive domestic policies, including a GST cut for readymade garments.

What This Means for Investors:

• A deal or significant progress in the trade talks could help major Indian textile exporters restore lost US business, which contributes 50–70% of revenues for some firms.

• Shares of Welspun India, Indo Count, and KPR Mill led the charge, with strong buying interest also seen in Vardhman Textiles, Gokaldas Exports, and Trident.

• The advance follows a period of sharp correction in the sector, so today’s gains mark both relief and renewed optimism.

Sector Outlook:
While outcomes of the trade negotiations remain uncertain, investor sentiment has clearly improved. Any concrete tariff rollback could act as a major catalyst for margin expansion and export growth, making textile stocks worth watching in the months ahead

source CNBC-TV18.