The shares of textile companies jumped on October 10 after Prime Minister Narendra Modi said that he has spoken to US President Donald Trump over a phone call and the two leaders have "reviewed good progress achieved in trade negotiations".
The possibility of further trade talks between India and US, which may result in a trade deal between the two countries, boosted investor sentiment for the export-oriented textile stocks.
Top textile gainers:
Kitex Garments shares rallied nearly 11 percent to trade at Rs 199.15 apiece, while Gokaldas Exports shares surged nearly 9 percent to trade at Rs 800 apiece. Pearl Global Industries shares jumped around 3 percent to trade at Rs 1,305.9 apiece.
Indo Count Industries shares rallied nearly 9 percent, while Raymond Lifestyle shares were up around 1 percent.
What PM Modi said:
Taking to X, PM Narendra Modi wrote, "Spoke to my friend, President Trump and congratulated him on the success of the historic Gaza peace plan. Also reviewed the good progress achieved in trade negotiations. Agreed to stay in close touch over the coming weeks."
The latest development comes after Trump imposed 50 percent tariffs on Indian imports. Textile companies, which derive a major chink of their revenues from imports to the US, saw significant decline. This was further fuelled as their rivals in Bangladesh and Vietnam were set to enjoy a competitive advantage as they were charged significantly lower tariffs.
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