The shares of shrimp-feed companies sharply surged on November 19 after Union Commerce Minister Piyush Goyal spoke about the much-awaited India-US trade deal.
The latest comments by the Indian minister boosted investor sentiment as it would likely result in reduction in tariffs levied on Indian exports to the US, benefitting the export-oriented sectors significantly.
Apex Frozen Foods shares jumped nearly 5 percent to trade at around Rs 305.99 apiece. Coastal Corporation and Avanti Feeds shares surged more than 9 percent each.
What Piyush Goyal said?
Speaking at the Indo-US Business Summit in New Delhi, Goyal said "good news" on the proposed India–US trade agreement can be expected once the two sides arrive at a deal that is fair, equitable and balanced.
"Negotiation is a process and India as a nation has to secure the interest of its stakeholders and balance it with our sensitivities - our farmers, fishermen, small industry. You will hear good news once the deal becomes fair, equitable and balanced," he said.
The minister further said he doesn't consider there to be a hiatus in India-US relations. "It continues to be very important and strategic for both countries. We have just signed the 10-year defence pact with the department of war of the US. A partnership which is as comprehensive as the US-India relationship has many elements and every element need not run at the same speed," he said adding that sometimes there is some bickering in every family.
"The story of Indo-American partnership can best be described as two trusted partners working together for the shared prosperity for not just the two countries, but for the entire world. In fact we have just signed a major LPG agreement for importing 2.2 million tons per annum from them. So it is an ongoing partnership," he said.
US President Donald Trump has also reiterated his claim several times that India and US are nearing a trade deal.
Why are shrimp 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 and US finalising on the trade deal boosted the export-oriented shrimp stocks, who derive a significant portion of their revenue from the American market.
Additionally, China notified Japan that it will ban all imports of Japanese seafood, Kyodo news agency and NHK reported on Wednesday. This comes as relations between Beijing and Tokyo deteriorated over Japanese Prime Minister Sanae Takaichi's comments on Taiwan.
Indian shrimp-feed companies also export products to China. Hence, the ban on Japanese seafood may have increased expectations of higher demand in China, boosting the stocks.
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