The shares of export-oriented shrimp feed and textile companies surged in the early trading hours of September 10. This comes after US President Donald Trump said Washington and New Delhi will resume negotiations to resolve the ongoing trade frictions.
In a social media post on Truth Social, Trump announced, "I am pleased to announce that India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations."
"I look forward to speaking with my very good friend, Prime Minister Narendra Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!" he further wrote.
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, Trump's latest comment may have boosted investor sentiment on the possibility of the two countries concluding their long-awaited tariff deal.
Additionally, the US Supreme Court has agreed to decide the legality of Donald Trump's sweeping global tariffs. This comes after a lower court ruled that Trump’s tariffs were illegal.
Apex Frozen Foods shares rallied nearly 14 percent to trade at Rs 251 apiece. Avanti Feeds surged more than 9 percent, while Coastal Corporation shares jumped over 5 percent.
Gokaldas Exports shares surged nearly 7 percent, while KPR Mill shares were up around 3 percent. Raymond Lifestyle gained nearly 2 percent, while Welspun Living shares surged more than 7 percent. Arvind shares were up over 4 percent.
"A major positive for the market today comes from President Trump’s initiative to improve India-U.S. relations and PM Modi’s positive response to the same. However, from past experience the market should judge President Trump by his actions and not words," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
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