Gokaldas exports share price gained in early trade on October 23
Shares of textile and apparel makers witnessed gains
The gains followed reports related to the reduction of tariffs on textile imports
Gokaldas exports share price gained in early trade on October 23
Shares of textile and apparel makers witnessed gains
The gains followed reports related to the reduction of tariffs on textile imports
Shares of domestic textile companies surged in trade on October 23 during the early hours of the trading session. Gokaldas Exports shares surged 13 per cent to an intraday high of Rs 898.95 apiece on the NSE. Other textile stocks such as Raymond’s Lifestyle Ltd, Trident Ltd, Welspun Living and Indo Count Industries Ltd also gained in early trade. The gains followed a shift in investor sentiment following news of progress in the India-US trade deal.
Raymond Lifestyle shares gained 4 per cent to trade at an intraday high of Rs 1246.4 apiece on the NSE, Indo Count Industries shares surged over 7 per cent to an intraday high of Rs 289.35 apiece on the NSE. Trident Ltd and Welspun Living shares also surged 6 per cent and 7 per cent respectively on the NSE.
The gains seen in the textile space followed renewed optimism on D-street amid new developments on the India-US trade deal front. Earlier in August, textile stocks emerged as the top-laggards amid the imposition of trade tariffs by the US. The imposition of 50 per cent trade tariffs on Indian textile imports along with additional duties lowered the volume of exports. In September, textile and apparel exports fell by 10.34 per cent compared to September 2024 according to data by the Confederation of Indian Textile Industry (CITI) on account of the tariff imposition.
Harshal Dasani, Business Head at INVasset PMS told Outlook Money that the optimism around a India-US trade deal coupled with operational factors such as improving order visibility and stability in cotton prices have aided the rally in textile stocks.
“Optimism around an India–US tariff truce has clearly contributed to the recent rebound in textile names. Reports indicating potential reduction of US tariffs on select Indian goods to the 15–16 per cent range have lifted sentiment after a prolonged demand lull. This comes alongside improving order visibility for Q3–Q4 FY26 as US retail inventories normalise and cotton prices remain stable,” Dasani said.
The optimism surrounding the signing of a trade deal has acted as a key catalyst for the rally in export-focused textile stocks. According to reports, the tariff imposed on Indian textile imports to the US could be reduced from around 50 per cent to 15–16 per cent. The reduction in tariffs is expected to act as a tailwind for the textile industry as nearly 28 per cent of India’s textile and apparel exports go to the US, earning the industry $11 billion in 2025, according to CITI. Notably, reports related to the deal emerged after diplomatic discussions were held between US President Donald Trump and Prime Minister Narendra Modi.
Textile stocks are likely to have benefitted from access to the India-UK Free Trade Agreement (FTA) as well. The agreement which was signed in July 2025 eliminated tariffs which previously put Indian textile exporters at a disadvantage. As 99 per cent of Indian exports, including textiles and apparel, gained duty-free access to the UK market, overall exports to the UK saw a surge in the month of September increasing by 12 per cent in September 2025, from $988 million in September 2024 to $1,106 million.
Textile stocks also likely to have gained following a boost in festive spending. Prior to the festive season the Goods and Services Tax on readymade garments priced below Rs 2500 was also reduced to 5 per cent from 12 per cent. The GST rate on man-made fibres, yarns, handloom, handicrafts, and carpets was also lowered to 5 per cent. The GST rate cut coupled with the festive buying is also likely to have improved investor sentiment towards the textile space.
Notably, record-breaking Diwali sales were observed in 2025 as total festive trade touched Rs 6.05 lakh crore, comprising Rs 5.40 lakh crore in goods and Rs 65,000 crore in services, according to the “Research Report on Diwali Festival Sales 2025 by the Confederation of All India Traders (CAIT).
Dasani urged investors to only take entry into the textile space in a selective and staggered manner. He also advised investors to watch out for actual confirmation of the India-US trade deal before making major allocations.
“Fresh entries should be selective and staggered. However, investors should watch for confirmation of actual tariff revisions and sustained demand from the US and EU markets before committing large allocations,” Dasani said.
“A phased accumulation on dips, rather than chasing the rally, would be a more prudent strategy as valuations have expanded faster than earnings visibility in the short term,” Dasani added.
Dasani said that existing investors of textile stocks can consider booking profits partially in stocks which have surged 25-30 per cent from August's lows.
“Existing investors who entered before the September rally can consider partial profit booking, especially in stocks that have rallied 25–30 per cent from their August lows. Locking in some gains helps manage volatility ahead of formal trade announcements and Q3 earnings,” Dasani said.