Textile stocks in demand on govt stimulus

MUMBAI: Shares of textile companies attracted investor interest after textile minister Dayanidhi Maran said that the government will give Rs 2,546 crore financial help to domestic firms to upgrade their manufacturing units. (Watch)

The help is extended under the technology upgradation fund scheme (TUFS), which gives 5% interest waiver on bank loans taken by textile companies for buying latest plants and machinery.

The move will give relief to the sector, which is reeling under the impact of a global slump in demand. The money will be sufficient to meet requirements of all applicants, who applied under the scheme up to June 30, 2009.

At 10:15 am, shares of Alok Industries surged 3.23 per cent to Rs 22.35, Arvind Limited climbed 2.85 per cent to Rs 28.90, Bombay Dyeing advanced 4.04 per cent to Rs 377.10.