Textile Stocks Rally as India–US Trade Talk Optimism Lifts Sentiment

Textile counters were buzzing on Friday, with several stocks clocking sharp gains after Prime Minister Narendra Modi said his recent conversation with U.S. President Donald Trump reflected “good progress” in ongoing trade discussions. The comment was enough to set off a buying spree across the sector, as investors bet on a friendlier export environment for Indian manufacturers.

A Ray of Hope for Exporters

For months, the textile industry has been battling margin pressure from high input costs and trade-related uncertainty. So when news broke that the India–U.S. talks were moving forward smoothly, traders were quick to respond.

The market read Modi’s statement as a possible sign that Washington could ease some of the tariff barriers that had dented India’s export competitiveness in recent years. That hint of relief was enough to spark renewed optimism in textile counters that had been stuck in a narrow range for weeks.

Stocks That Stole the Spotlight

Leading the rally was Kitex Garments, which surged nearly 11% on heavy volumes. Gokaldas Exports and Indo Count Industries followed close behind, each rising around 9%.

Even relatively stable names like Pearl Global and Raymond joined the uptrend, adding modest but steady gains as investors widened their bets across the board.

Market analysts noted that the sudden surge reflected not just speculation, but genuine expectation that export-linked sectors could see a sentiment turnaround if trade terms improve.

Why It Matters

Textiles remain one of India’s most employment-intensive and export-dependent sectors. Any relaxation in U.S. trade policy or tariff structures could directly boost order flows for Indian manufacturers.

While no formal agreement has been announced yet, investors clearly see the ongoing dialogue as a step in the right direction — especially at a time when global demand is showing early signs of recovery.

Caution Still in the Air

Despite Friday’s euphoria, market experts advised traders to stay realistic. Negotiations often move slowly, and geopolitical noise can easily shift sentiment. Still, for a sector that’s been quietly waiting for positive news, even a glimmer of progress is enough to lift spirits.