India-US trade deal impact: Gokaldas Exports, Avanti Feeds, other textile and shrimp stocks rally up to 20%

Trade deal impact

• Textile, shrimp feed stocks surged as India-US trade deal cut tariffs to 18%
• Shares of Gokaldas Exports, KPR Mill, Indo Count, Avanti Feeds rose up to 20%.
• US is a key export market for these companies, driving major revenue growth

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The shares of export-oriented textile and shrimp feed companies rallied in trade on February 3 after India and US concluded their much-awaited bilateral trade agreement, effectively reducing the tariffs on Indian imports from 50 percent to 18 percent.

These companies derive a major portion of their revenue from exports to the US. After seeing a sharp decline earlier when US President Donald Trump hiked tariffs on Indian exports, these stocks are seeing massive surge today.

India-US trade deal:

"Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25 percent to 18 percent," Trump wrote in a post on Truth Social after a telephonic conversation with Prime Minister Narendra Modi.

Trump described Modi as “one of my greatest friends” and a “powerful and respected leader of his country,” adding that the two leaders discussed trade, global security and efforts to end the Russia Ukraine war.

"Key sectors that can benefit include textiles and apparel, auto ancillaries and engineering, specialty chemicals, agro and seafood exports, and select electronics and consumer manufacturers with US exposure. This aligns well with the recent budget, which clearly focuses on exports, manufacturing, and integrating India deeper into global supply chains," said Divam Sharma, Co-Founder and Fund Manager at Green Portfolio PMS.

Harendra Kumar, MD of Elara Capital, meanwhile said that key focus areas include medical tourism, the export of skilled professionals to markets such as the UK and the EU, and investments in textile parks, semiconductors, data centres and nuclear energy. "While the impact will ultimately depend on execution, the Budget presents a clear direction and potential opportunities for long-term growth," he added.

Textile stocks:

Gokaldas Exports shares jumped 20 percent to hit the upper circuit at Rs 694.05 apiece. K.P.R. Mill shares were also locked in the 20 percent upper circuit at Rs 1,030.80 apiece. Indo Count shares also jumped 20 percent, while Arvind shares gained more than 19 percent.

Shrimp stocks:

Avanti Feeds and Apex Frozen also rallied 20 percent, while Coastal Corporation shares hit the 5 percent upper circuit.

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.

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