Faze Three, Indo Count zoom up to 20% on revival of India-US trade talks

Welspun Living, Gokaldas Exports, Pearl Global, Vardhman Textiles, Trident, Kitex Garments, Nahar Spinning and Himatsingka Seide rallied between 5 per cent and 12 per cent.

Shares price of textile companies today

 

Shares of textiles companies rallied up to 20 per cent on the BSE in Wednesday’s intra-day trade amid heavy volumes after he US President Donald Trump said trade negotiations with India are ongoing and that he will speak with Prime Minister Narendra Modi soon, expressing confidence in reaching a deal.

 

Shares of Faze Three (₹547) and Indo Count Industries (ICIL) (₹284.50) were locked at the respective 20 per cent upper circuits, with only buyers seen at these counters. Welspun Living, Gokaldas Exports, Pearl Global Industries, Vardhman Textiles, Trident, Kitex Garments, Nahar Spinning and Himatsingka Seide rallied between 5 per cent and 12 per cent. In comparison, the BSE Sensex was up 0.57 per cent at 81,560 at 10:22 AM.  Track Stock Market LIVE Updates 

What's driving textile stocks today?

 

Trump’s administration recently doubled tariffs on Indian goods to 50 per cent and urged the European Union to impose 100 per cent tariffs on India and China to pressure Russia. Tensions stem from India’s continued purchase of Russian oil, with Trump’s advisors criticizing New Delhi’s trade stance.

 

Most of the textile stocks saw sharp correction in market due to uncertainty in operating performance, particularly from H2FY26, owing to steep tariffs imposed by the US, which could adversely impact volume off-take and realisations for the companies.

 

However, according to latest reports, the trade deal talks between India and the US have gained momentum as both Prime Minister Narendra Modi and American President Donald Trump expressed optimism about resolving long-standing issues and concluding negotiations at the earliest.

 

Prime Minister Narendra Modi on Wednesday welcomed the US President Donald Trump's offer to resume negotiations with India to address the "trade barriers" between the two countries. CLICK HERE FOR FULL REPORT

 

Globally, demand for home textiles is primarily driven by the US and Europe, with the US accounting for approximately 28 - 29 per cent of India's textile and apparel exports in recent years. Following tariff hikes by the US from 25 per cent to 50 per cent on Indian goods, Indian textile exporters face a significant cost disadvantage in the US market compared to its peers. This may shift some orders to competing countries with relatively lower tariffs.

 

Indian textile exports are not expected to decline materially in CY25, as some US buyers have also advanced their shipments from India ahead of the August 27 tariff hike. However, in CY26, Indian textile exports to the US could decline significantly, according to Care Edge Ratings.

 

The expected decline in exports is likely to be compensated by increase in exports to UK aided by India-UK FTA, and ongoing FTA negotiations with the EU. The India-UK FTA is a game changer for India’s RMG and home textile sectors, creating a level-playing field vis-à-vis key competing nations for accessing the nearly $23 billion UK import market, the rating agency said in its sector update.

 

Meanwhile, the US accounts for ~70 per cent of ICIL’s sales, with the balance 30 per cent derived from the UK., Europe, and other regions. In Q1FY26, Indo Count reported sales of ₹959 crore. Given that Q2 sales have historically been stronger and are likely to be supported by pre-buying from US retailers in anticipation of higher tariffs, CARE Ratings expects the company’s performance in H1FY26 to remain resilient, with the tariff-led impact likely to be more pronounced in H2FY26.

 

The outlook for the coming year remains optimistic, supported by trade agreements and a rebound in global demand, particularly in the US and India. However, the introduction of new US tariffs requires careful navigation to ensure sustained growth and stability, Indo Count said in its FY25 annual report.

 

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