Vardhman, Apex Frozen rally upto 11%; why textiles, shrimp stocks in focus?

Textiles, shrimp-related stocks rallied in Thursday's intra-day trade following reports that the US and India are close to signing a trade deal which could see substantial cut tariffs.

Don't want to miss the best from Business Standard?

Shares price movement of textile, shrimp companies today

 

Shares of textile and shrimp companies rallied up to 11 per cent on the BSE in Thursday’s intra-day trade amid heavy volumes as the US and India were reportedly close to signing a trade deal, which could see substantial reduction in tariffs.

 

Vardhman Textiles, Gokaldas Exports, Indo Count Industries, KPR Mills, Arvind, Welspun Living, Alok Textiles and Trident from the textiles sector, and Avanti Feeds, Apex Frozen Foods from the shrimps surged between 4 per cent and 11 per cent. In comparison, the BSE Sensex was up 0.87 per cent at 85,160 at 09:48 AM.

 

What's driving textile, shrimp stocks today?

 

As per reports, the US and India are close to signing a trade deal which could see substantial reduction in tariffs. The US is expected to trim the tariff rate from present 50 per cent to 15-16 per cent with India also expected to reduce its import of Russian oil. The deal is likely to be announced during the ASEAN summit which is to be held in late October.

 

If India-US signs a trade deal with lower tariff rates at 15 per cent, it will create a competitive edge for the textile sector against India’s peers such as Vietnam which have 20 per cent tariffs and Bangladesh 35 per cent. India's share in textile exports will improve in the coming years. Textile companies performance is expected to be subdued in Q2 and Q3FY26 as profitability will be affected by higher tariffs of 50 per cent. However the same is reflected in the current valuations as key textile stocks are down substantially from their 52 weeks high, ICICI Securities said in a note. 

 

If the deal gets signed the brokerage firm expects the performance of textile companies to gradually improve from Q4FY26. “It will be textile companies positive in our coverage such as Gokaldas Exports, Indo Count Industries and KPR Mills,” ICICI Securities said.

 

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.

 

The US remains India’s most significant export destination for shrimps, accounting for 48 per cent of export value and 40 per cent of export volumes in the calendar year 2024.

 

The first half of the year 2025 has been a good profitable period. However, the forecast for the second half of this year is challenging due to factors like gradual increase of raw material prices and levy of reciprocal tariff by the US at the rate of 50 per cent, which will have a significant impact on the performance of the company, particularly the second season, Avanti Feeds said in its Q1FY26 earnings conference call.

 

In general, FY25-26 is expected to be a mix of favourable and challenging seasons for the aquaculture industry, both in respect of shrimp production as well as exports from India and global demand for shrimp exports, the company said. 

 

As the aquaculture industry consolidates, Avanti is positioned to capitalize on emerging opportunities.  India’s aquaculture sector is at an inflection point. Backed by the Government’s Pradhan Mantri Matsya Sampada Yojana (PMMSY), the sector is poised to achieve 22 million MT of seafood production by FY26. With infrastructure expansion, inland fisheries support, and rising domestic seafood consumption, Avanti Feeds said it is well placed to ride this wave of opportunity.