The government has halved benefits under the RoDTEP scheme for exporters in textiles, and gems & jewellery, restricting incentives to 50% of notified rates and value caps with immediate effect.
Commerce Minister Piyush Goyal has indicated India may secure zero-duty textile access to the US, matching a tax relief granted to Bangladesh that has put Indian exporters under pressure.
Despite today's decline, in the past one month, these stocks have outperformed the market, surging up to 33 per cent, as against 0.56 per cent rise in the benchmark Sensex.
Textile stocks in focus: Lower reciprocal tariffs and recent trade deals with UK/EU provide multi-year advantage to boost earnings/cashflows by enhancing export base for the sector, believe analysts.
The signing of India-US trade deal remains key monitorable as any revision to the current tariff rates to below India's competitive peers would be positive for the textile sector, say analysts.