India-US trade deal: Gokaldas Exports, Avanti Feeds, Kitex Garments, other export-oriented shares extend gains, rise up to 18%

Gokaldas Exports, Avanti Feeds, Kitex Garments shares gain.

• Export stocks surged up to 20% on India-US trade deal optimism.
• US tariff cut to 18% boosts India's textile and shrimp export competitiveness.
• Textile and shrimp firms gain from expanded US and EU trade deals

Did our AI summary help?

Export-oriented stocks such as Gokaldas Exports, Avanti Feeds and Kitex Garments extended their gains in Wednesday’s trade, rising as much as 20 percent, amid positive sentiment following the India-US trade deal.

These stocks added to the sharp rally seen in the previous session. The companies derive a significant portion of their revenues from exports to the United States. The shares had earlier come under pressure after the US raised tariffs on Indian exports.

Shares of Gokaldas Exports surged 20 percent to hit an intraday high of Rs 832.85 on the NSE. The stock opened with a gap-up gain of 12.15 percent and has risen over 41 percent in the past two sessions.

Among other textile stocks, K P R Mill gained 2.62 percent to Rs 1,014.90 per share. Indo Count Industries jumped around 11 percent, while Arvind advanced over 2 percent. Kitex Garments was up about 12 percent.

According to ICICI Securities, a reduction in reciprocal tariffs from 50 percent to 18 percent, along with recent trade deals with the UK and the European Union, is expected to provide a multi-year advantage to the textile sector by boosting earnings and cash flows through an expanded export base and capacity additions.

The cut in US tariffs to 18 percent from 50 percent earlier gives India a competitive edge over other Asian exporters, where tariff rates range between 19 percent and 30 percent, ICICI Securities said.

Shrimp exporters also witnessed strong buying interest. Avanti Feeds rose 12 percent and Apex Frozen Foods climbed 10 percent, while Coastal Corporation hit the 5 percent upper circuit.

The US accounted for 53 percent of Apex Frozen’s export sales in FY25. North America contributed 65.4 percent of Avanti Feeds’ total sales in the first quarter of FY25.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.