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Indian textile stocks rallied sharply on Thursday as hopes grew for a breakthrough trade deal between India and the United States. The market surge came after reports suggested that tariffs on Indian exports could drop from 50 per cent to around 15-16 per cent, boosting sentiment across export-focused sectors.​

Leading textile manufacturers witnessed significant gains as investors priced in potential benefits from tariff relief. The rally followed renewed diplomatic momentum after Prime Minister Narendra Modi spoke with US President Donald Trump, with both leaders reviewing "good progress" in trade negotiations.​

Among the major gainers in the textile sector, Kitex Garments led the charge with an impressive 15 per cent surge, touching the intraday of Rs 219. Gokaldas Exports, a readymade apparel manufacturer, jumped 10 per cent, with shares touching Rs 898.95 levels.

Welspun Living, home textiles player, climbed 6 per cent to trade around Rs 132. Indo Count Industries, another major home textiles manufacturer, gained 7 per cent with its stock price moving to Rs 287.

The proposed India-US trade deal could provide significant tariff relief for Indian goods including textiles, pharmaceuticals, and engineering products. Commerce Minister Piyush Goyal's recent meetings with US counterparts have strengthened expectations of a breakthrough.

The textile sector has been under pressure since the US imposed an additional 25 per cent duty on Indian goods earlier this year, doubling existing tariffs to 50 per cent. This move significantly impacted India's key export segments, with the US accounting for nearly 30 per cent of India's total textile exports.​

Abhay Shukla is a Senior Sub-Editor at Zee Business, where he covers the stock markets, corporate news, personal finance, technology, and auto sectors.

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