Textile Stocks: Welspun Living, Gokaldas Share Price Surge up to 9% on India US Trade Talks Optimism

Textile stocks rebounded sharply on September 10, 2025, as renewed trade discussions between India and the US revived investor sentiment. Companies such as Welspun Living, Gokaldas Exports, Trident, Vardhman Textiles and Pearl Global witnessed significant gains on hopes of a reduction in tariffs.

Textile Stocks Rally as Trade Talks Rekindle Hope

Welspun Living shares surged over 9% to trade at ₹124.55, while Gokaldas Exports rose 7.3% to ₹802.15. Trident saw a gain of over 4%, and Indo Count Industries climbed 6.7%. Vardhman Textiles and Pearl Global also added between 5% and 6%. The rally followed social media exchanges between US President Donald Trump and Indian PM Narendra Modi, signalling renewed trade discussions after a prolonged tariff standoff, as per news reports.

Impact of Tariffs on Indian Textile Industry

The textile industry has faced intense pressure after the US imposed an additional 25% duty on Indian goods, doubling existing tariffs to 50%. This move significantly impacted India's key export segments such as textiles, gems and jewellery, and seafood. According to GTRI data, over 66% of India's exports, with textiles contributing the majority, were affected.

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Export Dependence on US Heightens Volatility

A substantial portion of revenue for these textile firms, ranging from 50% to 70%  originates from the US market. Companies like Pearl Global have expressed concerns, citing that US clients are seeking 15% to 20% price cuts to counterbalance increased costs. If high tariffs persist, exports worth $6 billion could be diverted, endangering several lakh jobs across the country.

Recent Correction Enhances Upside Potential

These textile stocks had corrected by 15% to 20% over the past 1 month due to tariff implications and global uncertainty. The current rebound reflects investor optimism that diplomatic engagement may foster favourable trade outcomes. The stocks’ recovery coincides with strong statements from leadership indicating the potential for a near-term breakthrough in negotiations.

Conclusion

Textile stocks like Welspun Living, Gokaldas Exports and others surged on fresh hopes of a resolution in the India-US trade discussions. With substantial exposure to the US market, any improvement in trade terms could provide a meaningful impetus to the sector, which has faced recent headwinds from elevated tariffs.

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