Textile, shrimp stocks rise up to 4% after Trump hints at trade deal with India soon

Shrimp, textile stocks rally

The shares of textile and shrimp stocks sharply surged on October 29 after US President Donald Trump hinted at having a trade deal with India soon.

The latest comments by the American President 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.

What Trump said?

US President Trump on Wednesday said that he holds great respect for Indian Prime Minister Narendra Modi. Speaking at the APEC CEO Summit in South Korea, he added that he is going to "do a trade deal with India".

Earlier during his speech, Trump spoke about his talks with India's Prime Minister Narendra Modi on the conflict with Pakistan. He described PM Modi as the "nicest looking guy" and "like a father".

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, who derive a significant portion of their revenue from the American market.

Top gainers among shrimp stocks:

Apex Frozen Foods shares jumped more than 4 percent to trade at around Rs 248 apiece. Coastal Corporation shares rose more than 2 percent, while Avanti Feeds shares sharply recovered all losses to trade in the green, after dropping around 2 percent earlier during the day.

Top gainers among textile stocks:

Gokaldas Exports and Pearl Global Industries shares jumped around 4 percent each, while Raymond Lifestyle shares gained more than 2 percent. KPR Mill shares also recovered significant losses after the announcement to trade nearly flat in the red.

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