Buying interest seen in cotton stocks: Hemang Jani, Sharekhan

Hemang Jani, Senior Vice President, Sharekhan, in a chat with ET Now talks about the textile space.

What is driving textiles? Is it that the Chinese revaluation of the Yuan is pushing the business or is that these are just low floats, so they move anyway?

Because of the kind of financial assistance that they have got from the government coupled with the fact that the cotton prices have been stable for the past two years and some of these companies have actually done a major cost control, so because of a low base effect, some of the companies have started reporting good growth and some of the global markets have revived.

The guys who were exporting in a major way to Europe and other countries, we have seen that the export business has also picked up. So combination of these types is leading to some kind of a buying interest in the textile stocks.