Shares of major Indian textile companies rallied sharply on Friday, with several counters hitting upper circuits on the BSE amid heavy trading volumes in an otherwise muted market, as investor sentiment improved on expectations of favourable trade developments.
Gokaldas Exports was locked in the 10 per cent upper circuit by mid-day, staging a strong recovery from intra-day lows and extending its upward momentum through February. KPR Mill also surged 10 per cent in intra-day deals, while Vardhman Textiles gained around 8 per cent.
Other textile and apparel stocks joined the rally. Arvind Ltd, Kitex Garments, Himatsingka Seide, Kewal Kiran Clothing and Nitin Spinners advanced between 3 per cent and 9 per cent during the session.
Market participants attributed the rebound to improving sentiment around export prospects. Optimism followed indications from Piyush Goyal, India’s Commerce and Industry Minister, that the country could secure zero-duty access for textiles under a prospective trade agreement with the United States, similar to concessions extended to Bangladesh. Such a development is seen as structurally positive for export-oriented textile players.
Brokerages noted that potential tariff rationalisation could enhance India’s competitiveness in the US market, enabling domestic manufacturers to capture a larger share of global apparel and textile orders. Improved capacity utilisation, stronger order books and greater supply-chain visibility are expected to support earnings growth for companies with significant US exposure.
The sector, however, has witnessed heightened volatility in recent days. Earlier in the week, stocks such as Gokaldas Exports and KPR Mill had corrected following developments in bilateral arrangements between Bangladesh and the United States, which raised concerns over competitive pressures.
Despite short-term fluctuations, analysts remain cautiously optimistic. They point out that expanded market access through trade agreements with key partners, including the European Union and the United Kingdom, could provide sustained momentum to India’s textile exports over the medium to long term.
