Indian textile companies continuing to do well; expect a positive traction, says Vinay Khattar

In a chat with ET Now, Vinay Khattar, Head Research (Individual Clients), Edelweiss Financial Services Limited, shares his views.

ET Now: What about textile exporters like Welspun India or Arvind for that matter?

Vinay Khattar: Textile export as a theme could be good bet but in terms of actual traction that you would see, our sense is that it is a bit off.

Let us look at what has happened in the textile at this particular point in time, the depreciation in currency on the Indian side as well as appreciation in currency on China has tilted in the favour clearly in favour of countries like India and Bangladesh.

Again the winners are far more on the Bangladesh side than on the Indian side though Indian companies are continuing to do well and you will see a positive traction.

With Modi government making a certain degree of announcement the textile is going to be one of the key focus area for the government and you could see certain degree of policy changes probably changes to scehemes like tough and so on.

Textile could see lot of traction going forward and within the current space Arvind could be an interesting bet for one to play but if you were to look at structural stories and long term bets then we will have to wait for certain degree of regulator level clearance and what does government do in terms of aiding the industry on the textile side which could be of interest.