KPR Mill’s shares rallied as much as 7% to their day’s high of Rs 1,121, while Gokaldas Exports rose 3.5% to Rs 786. Trident hit a high of Rs 30.36, up nearly 3% from the last close. Welspun Living rallied over 3% to its day high of Rs 125.49, while Raymond Lifestyle gained 4% to Rs 1,350 per share.
The surge comes after Reuters reported that the two nations will be back at the table on Tuesday after US President Donald Trump imposed tariffs of up to 50% on India for buying Russian oil. The development gains significance as Trump recently said that negotiations for a trade deal with India were underway.
Prime Minister Narendra Modi also echoed the same optimism on X (formerly Twitter), saying ‘I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership.”
Other major triggers that could be beneficial for the textile majors include the India-UK Free Trade Agreement (FTA). The deal is expected to aid textile exporters by removing the 10–12% duty that had previously hurt them against competitors. The deal now gives India parity with Cambodia, Pakistan, and Bangladesh, which already enjoy duty-free access.
In addition, the new GST rate on readymade garments priced up to Rs 2,500 has been reduced to 5% from 12%. Man-made fibres, yarns, handloom, handicrafts, and carpets will also face a lower uniform rate of 5%.In a recent report, Crisil Ratings said India’s home textile makers could be staring at a 5-10% decline due to Trump tariffs. Companies that derive more than half of their revenue from the US are expected to feel a sharper impact. To counter this, exporters are eyeing the European Union and the UK, which together made up about 13% of India’s home textile exports last fiscal. Also read: India’s most hated stocks now contra bets for Rs 75 lakh crore mutual fund industry. Here’s why
Textile stocks have faced selling pressure ever since Trump imposed an additional 25% tariff on India. This is far steeper than the 20% levied on peers Bangladesh and Vietnam, undercutting the country’s edge in key categories such as apparel. Companies like KPR, Welspun and Indo Count derive 50–70% of their revenues from the US market.
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