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

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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