Shares of major Indian textile companies surged on Friday, with several stocks rising by up to 10% on the BSE amid heavy volumes in an otherwise subdued market, according to market data.
Gokaldas Exports was locked in the 10% upper circuit by mid-day, recovering sharply from intra-day lows and extending a strong gains trend for February. KPR Mill also climbed 10% in intra-day deals, while Vardhman Textiles shares rose around 8%. Other textile and apparel stocks, including Arvind Ltd, Kitex Garments, Himatsingka Seide, Kewal Kiran Clothing and Nitin Spinners, were up between 3% and 9%.
Analysts attributed the rebound to improving sentiment driven by expectations of enhanced export competitiveness for Indian mills. Market participants pointed to indications from Piyush Goyal, India’s Commerce Minister, that the country may secure zero-duty access for textiles in a prospective trade agreement with the United States, similar to concessions granted to Bangladesh. This prospect is seen as providing long-term support to export-oriented stocks.
Brokers noted that the implications of the proposed trade benefits could include a greater share of global orders and improved capacity utilisation for Indian exporters. Firms with meaningful exposure to the US market are expected to benefit from tariff rationalisation and greater supply-chain certainty, supporting earnings visibility.
The textile sector has experienced heightened volatility in recent days as investors weigh the impact of evolving trade dynamics. Earlier in the week, textile stocks, including Gokaldas Exports, KPR Mill and Pearl Global, had seen share prices retreat after developments in bilateral agreements between Bangladesh and the United States triggered competitive concerns.
Despite short-term swings, analysts remain cautiously optimistic, noting that improved market access through trade agreements with key partners such as the EU and UK could sustain export growth prospects for Indian textile firms.
