03 Apr '25
Indian textile companies have outshined other sectors in domestic stock markets today, bucking the overall bearish trend triggered by tariff concerns. Broader market sentiment remained weak due to the imposition of reciprocal tariffs by US President Donald Trump, but textile stocks surged on expectations of gaining an edge in the American market.
Insights
Indian textile stocks surged up to 15.10 per cent, defying the broader market downturn, as investors reacted positively to the US imposing the lowest reciprocal tariff (27 per cent) on Indian textiles among major Asian exporters.
With high US exposure, Indian firms are expected to gain a competitive edge, reinforcing optimism in the sector's near-term outlook.
(Fibre2Fashion News Desk (KUL): Indian stock markets have been jittery over the past few days as investors were worried about the impending announcement of reciprocal tariffs by the US. At 3:11 PM (IST) today, the National Stock Exchange (NSE) Nifty was trading at 23,252 points, down 84 points or 0.34 per cent.
The Bombay Stock Exchange (BSE) Sensex was noted at 76,322, with a decline of 313 points or 0.40 per cent.
Despite this, textile stocks recorded notable gains. Trident rose to ₹27.24 during the trading session, up by 7.92 per cent from its previous closing. Arvind Ltd was trading at ₹345.20, registering a gain of 5.74 per cent. KPR Mill climbed to ₹981.30 (2.25 per cent), while Vardhman Textiles made a significant leap to ₹462.60 (15.10 per cent).
Page Industries was trading at ₹43,307.15 with a gain of 0.73 per cent. Raymond moved up to ₹1,497.45 (5.99 per cent), and Himatsingka Seide saw an increase to ₹158.40 (3.66 per cent). Alok Industries gained 2.20 per cent to reach ₹15.81, and Indo Count Industries surged by 6.35 per cent to ₹287.10.
These companies have substantial exposure to the US market—estimated to be as high as 70 per cent for several players. The newly imposed 27 per cent reciprocal tariff on Indian textile products, though a hike, is the lowest among major Asian competitors, making Indian exports comparatively more attractive in the world’s largest economy.
Textile firms and investors view this as an opportunity to strengthen India’s foothold in the US market, especially as higher tariffs affect competing nations like Cambodia, Vietnam, Bangladesh, and China. The stock market’s reaction underscores this optimism, with textile counters emerging as clear gainers amid broader market weakness. (Source: Fibre2Fashion.com)