The shares of shrimp and textile companies surged on November 11 amid rising hopes for India and US reaching their much-awaited trade deal. This would likely result in reduction in tariffs levied on Indian exports to the US, benefitting these export-oriented sectors significantly.
US President Donald Trump on Monday said that the United States was getting close to reaching a trade deal with India which would expand economic and security ties between the two countries, boost American energy exports and promote investments in key US sectors.
What US President Donald Trump said?
"We are getting a fair deal, just a fair trade deal," Trump told reporters in the Oval Office during the swearing-in of his envoy to India, Sergio Gor. "We are making a deal with India, much different deal than we had in the past," he added.
Trump reiterated his optimism that a deal was near, stating, "We are getting close."
Why are shrimp and textile stocks rallying?
The shares of these export-oriented companies had significantly declined earlier after the Trump administration increased tariffs on Indian imports to a whopping 50 percent, citing New Delhi's continued purchase of Russian oil.
However, the rising expectations of India-US finalizing on the trade deal boosted the export-oriented shrimp and textile stocks, which derive a significant portion of their revenue from the American market.
Top gainers among textile stocks:
Gokaldas Exports shares jumped nearly 5 percent to trade at Rs 874.85 apiece. Raymond Lifestyle shares rose around 2 percent, while KPR Mill shares gained around 1 percent.
Top gainers among shrimp stocks:
Apex Frozen Foods shares rallied around 11 percent to trade at Rs 269.90 apiece. Avanti Feeds shares jumped nearly 7 percent.
Notably, US accounted for 53 percent of exports sales for Apex Frozen in FY25. North America meanwhile contributed to 65.4 percent of total sales for Avanti Feeds, as of Q1 FY25.
Also read: Our LIVE blog on stock market updates
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