In case of lower US tariffs, shares from IT, gems & jewellery, shrimps and textile-related sectors are likely to benefit, believe analysts.
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.
India and the UK have set themselves a target to double trade by 2030, which will help textile companies to diversify in new markets and grab more opportunities in the coming years.
The textile manufacturer produces about 90 million garments annually, with exports to the US, Canada, the UK and France
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.
Textile stocks traded largely negative, falling up to 4 per cent, after 50 per cent tariffs levied by the US on Indian goods came into effect from August 27, 2025
Textile stocks rallied in Tuesday's intra-day trade after the finance ministry removed the 11 per cent duty on raw cotton imports for a period of 42 days till September 30, 2025.
Trump Tariff Impact: The US has imposed a 25 per cent penalty via executive order, which takes the total tariff burden to 50 per cent on select Indian goods.
The recently announced revised reciprocal tariff by the US on India is expected to pose a challenge in the second half of this financial year, the management said.
In the past week, textile stocks have fallen by up to 18 per cent following Trump's announcement of a 25 per cent tariff
In the medium to long term India's tariff rate are competitive with other major exporting countries and hence exports order will normalise once tariff effect gets absorbed in the market.
Titan, Gokaldas Exports, Welspun Living, Goldiam International and Indo Count are likely to decline up to 27% from here, as stocks break below key support levels; show technical charts.
Textile shares outlook: Analysts expect the Indian textile sector to benefit if India manages to sign a favourable trade deal with the US.