Welspun crisis unlikely to affect textile stocks: Capital Mind

The recent scrutiny into Indian textiles sector following Target severing ties with Welspun over wrongly labelled cotton sheets will benefit the country’s textile segment in the long run, said Deepak Shenoy, Founder of Capital Mind.

Terming the Welspun stock correction as a one-off case, Shenoy told CNBC-TV18 that the incident is unlikely to cause ripple effect in other textile stocks.

The case is one-off aberration, Deepak Shenoy of Capital Mind said, adding there will not be any ripple effects to textile players other than to Welspun itself.

While scrutiny in textile players will increase owing to the incident, investors are unlikely to dump textile stocks. Scrutiny will only add costs in short term, but it will be a positive in the long term, Shenoy said.