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.
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.
Shares of Indo Count Industries rallied 10% to ₹307.79 on the NSE in Tuesday's intra-day trade after ICICI Securities recommended a BUY rating on the stock with a price target of ₹370 per share.
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 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.
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.