Shares of textile companies extended their bullish run on Tuesday, buoyed by a combination of positive policy developments, with the latest trigger being the announcement of the India–US trade agreement.
After months of negotiations, India and the United States reached a trade deal under which US President Donald Trump said tariffs on Indian goods would be reduced from 25% to 18%, following India’s agreement to stop purchasing Russian oil. He also indicated that the additional 25% duty imposed on account of such oil purchases would be withdrawn.
The development sparked a sharp rally in textile stocks, with several counters hitting the upper circuit. On the NSE, shares of Gokaldas Exports, Kitex Garments, Trident and KPR Mill surged 20% each. Arvind climbed as much as 19%, while Alok Industries advanced around 12%.
The broader market also saw strong gains. The Nifty 50 rose as much as 4.99%, or 1,252.8 points, to 26,341, while the Sensex jumped 5.15%, or 4,205.2 points, to 85,871.
Textile stocks had already been in focus a day earlier following announcements in the Union Budget. On Sunday, Finance Minister Nirmala Sitharaman said the government proposed setting up mega textile parks aimed at boosting value addition in technical textiles. The Budget also outlined plans for an integrated textile programme with five sub-components, consolidating existing schemes to improve efficiency and coordination.
These measures had lifted sentiment across the sector on Monday. Kitex Garments led the rally, rising more than 6%, while Pearl Global gained nearly 6% and Arvind advanced close to 5%. Export-oriented stocks such as Gokaldas Exports climbed about 4.5%, KPR Mill added over 4%, Welspun Living rose more than 3%, and Vardhman Acrylics traded marginally higher.
Together, the policy push outlined in the Budget and the improved trade outlook following the India–US agreement have reinforced optimism around the medium-term prospects of India’s textile and apparel industry.
