Textile Stocks Rally: Kitex, Welspun Living Share Price Rise After Trump Hints At India-US Trade Deal
Textile stocks like Kitex, Welspun Living, and KPR Mills gained notably during early trade on Thursday, following US President Donald Trump’s statement that he had spoken with Prime Minister Narendra Modi about trade, signalling renewed momentum in talks between the two countries.
Kitex Garments Leads the Gains
Kitex Garments lead the gains in the pack with nearly 11% gains, followed by Welspun Living which rose nearly 5%. The remarks come amid reports that the two nations are closing in on a bilateral trade agreement that could sharply reduce tariffs on Indian exports and expand cooperation in energy and agriculture.
India-US trade deal negotiations have been ongoing for several months, with both countries aiming to strengthen their economic ties. The potential deal is expected to have a significant impact on the Indian textile industry, which has been facing challenges due to high tariffs and competition from other countries.
Trump’s Remarks on India-US Trade Deal
‘Just spoke to Modi today on trade. We’re working on some great deal with India,’ Trump said, adding that ‘India is doing very well.’ The remarks suggest that the two countries are making progress in their trade negotiations, which could lead to a significant reduction in tariffs on Indian exports.
Trump also said Modi ‘won’t be buying too much oil from Russia,’ suggesting that India is likely to scale back its Russian crude imports as part of the broader understanding being worked out. This could have a significant impact on the global energy market, as India is one of the largest importers of crude oil.
Impact on Indian Textile Industry
The potential India-US trade deal could have a significant impact on the Indian textile industry, which has been facing challenges due to high tariffs and competition from other countries. The deal could lead to a reduction in tariffs on Indian textile exports, making them more competitive in the global market.
According to an Indian government official, both sides have narrowed their differences and are making ‘solid progress’ toward a trade deal aimed at lowering punitive tariffs. Indian negotiators reportedly had positive meetings in Washington last week.
Stock Market Reaction
The news of the potential India-US trade deal had a positive impact on the Indian stock market, with the NSE Nifty 50 and BSE Sensex surprising the street with its gap-up open when most Asian markets were trading in losses on Thursday.
The Nifty 50 reclaimed the 26,000 level for the first time since Sept 30, 2024, and the Sensex reclaimed 85,000 since September 2024. The counters that were trading in green included Alok Industries, Garware Technology, and Siyaram.
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Conclusion
In conclusion, the potential India-US trade deal could have a significant impact on the Indian textile industry and the overall economy. Investors should stay updated on the latest developments and consider investing in textile stocks and other sectors that could benefit from the deal.
