Gokaldas Exports, KPR Mill & other textile stocks surge up to 7% on hopes of Trump's tariff U-turn

Synopsis

US President Trump confirmed ongoing trade negotiations with India, saying that they will be completed soon. Prime Minister Modi echoed optimism and said talks could unlock the full potential of the India-US partnership, boosting investor sentiment on the D-Street.

Shares of textile companies jumped up to 7% on Wednesday after US President Donald Trump said on Truth Social that negotiations for a trade deal with India remain ongoing

By 10 am, shares of Gokaldas Exports and Welspun Living surged 7% to their day's highs of Rs 820 and Rs 127, respectively, while Pearl Global rose 7% to Rs 1,365. Kitex Garments, with nearly 70% of sales from the US, hit a 5% upper circuit at Rs 195.63. KPR Mill gained 3% to Rs 1,029, Raymond Lifestyle touched Rs 1,338, and Trident advanced 6% to Rs 30.

Trump said the two nations continue to address trade barriers and voiced confidence in reaching a successful agreement. 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.

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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%.

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Textile stocks have faced selling pressure ever since Trump imposed an additional 25% tariff on India, raising duties on Indian exports to nearly 50%. This is far steeper than the 20% levied on peers Bangladesh and Vietnam, undercutting the country’s edge in key categories such as apparel.

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