The move is expected to offer much-needed relief to the textile industry, with investors betting that the duty suspension will ease input cost pressures for manufacturers
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.