Textile stocks surge up to 8% as India-US interim trade framework lifts sentiment

Shares of major textile companies such as Gokaldas Exports, Raymond and Welspun rallied up to 8% on Monday as India and the US agreed on the framework of an interim free trade deal, lowering US duties to 18% on most Indian goods.

The interim trade agreement framework, announced on February 7, has also resulted in the revocation of the punitive 25% import duties levied by the US on Indian goods for buying Russian oil. Import duties on textiles and other goods will be reduced to 18% from 50% by the US as the two countries implement the framework.

Following the India-US interim trade deal, Gokaldas Exports shares soared around 8.5% to hit a high of ₹847.95 apiece on the BSE in early trade on Monday. The stock later traded 5.47% higher at ₹823.55 at 11: 45 am.

Welspun Living shares rose over 3.6% to trade at ₹145.4 apiece on the BSE. Arvind Ltd shares jumped 5.2% to ₹387.55 apiece, KPR Mill Ltd advanced by nearly 2% to ₹996.3 and Indo Count Industries Ltd gained over 1% to ₹306.

Garware Technical Fibres (5%), Raymond Lifestyle (3.5%), Bombay Dyeing (4.84%) and Filatex India (8%) also advanced.

Pearl Global Industries, which has significant exposure to the US market, however, dropped 2.64% to ₹1786.2 per share on the BSE.