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Textile stocks today: Shares of textile companies extended their sharp rally on Tuesday, building on gains from the Union Budget and the India–EU free trade agreement, as fresh momentum came from the India–US trade deal announced overnight. The sector emerged as one of the biggest winners in an otherwise strong market session.

India and the US, after months of negotiations, sealed a trade agreement that reduces tariffs on Indian goods exported to the US. President Donald Trump said the US will cut tariffs on Indian products to 18 per cent from 25 per cent, while also scrapping the additional duty imposed on India for buying Russian crude oil.

Prime Minister Narendra Modi welcomed the move, calling it a boost for domestic manufacturing. “Delighted that Made in India products will now have a reduced tariff of 18 per cent,” Modi said in a post on X, thanking President Trump for the announcement.

The deal comes more than five months after Washington imposed steep tariffs on several Indian exports, including a punitive duty linked to India’s purchase of Russian oil. Markets read the rollback as a clear positive for export-oriented sectors, especially textiles.

Textile stocks surged as much as 20 per cent on the NSE, with several names hitting upper circuits in early trade. Gokaldas Exports, Kitex Garments, Trident and KPR Mill jumped 20 per cent each. Arvind climbed as much as 19 per cent, while Alok Industries rose up to 12 per cent during the session.

By around 10:15 am, Trident was up 10 per cent and KPR Mill had gained 16 per cent, sharply outperforming the benchmark Nifty50, which was higher by about 2.3 per cent. Alok Industries was up 6 per cent, while Arvind traded 11 per cent higher.

Market participants said the rally reflected expectations of improved order flows and better pricing power for Indian exporters in the US market following the tariff reduction.

The upbeat sentiment spilled over to the broader market, with benchmarks posting their steepest intraday gains in nearly four years. The Nifty surged nearly 5 per cent, adding more than 1,250 points to cross 26,300, while the Sensex jumped over 5 per cent to trade above 85,800.

Traders attributed the sharp move to a combination of global cues, easing trade tensions and renewed confidence in India’s export prospects.

The latest rally builds on gains seen a day earlier, when textile stocks reacted positively to announcements in the Union Budget. Finance Minister Nirmala Sitharaman said the government plans to set up mega textile parks with a focus on value addition and technical textiles.

The Budget also proposed an integrated textile programme with five sub-parts, bringing multiple existing schemes under one umbrella to improve efficiency, coordination and outcomes for the sector.

Adding to the optimism, India and the European Union signed a long-pending free trade agreement last week, after negotiations spanning more than a decade. Once operational, the FTA will eliminate import tariffs on Indian textiles and apparel in the EU market, potentially opening up a major growth avenue for exporters.

What’s driving sentiment

With supportive policy signals at home, improved market access in Europe and now lower tariffs in the US, investors see a rare alignment of global and domestic factors favouring the textile sector. Analysts said the sustainability of the rally will depend on execution, global demand conditions and currency trends, but near-term sentiment remains firmly positive.