
Textile stocks jumped sharply after India and the US announced a new trade agreement that cuts tariffs on Indian goods to 18% from 25%. The removal of additional duties has improved export prospects for the sector with immediate effect.
The US is India’s largest export market for textiles, accounting for nearly 28% of total shipments. Lower tariffs make Indian products more competitive compared to peers like Bangladesh, Vietnam, and Sri Lanka, which still face higher duties.
Shares of Kitex Garments and Indo Count Industries surged up to 20%.
Other stocks such as Welspun Living, KPR Mill, Arvind, Trident, Bombay Dyeing, and Vardhaman Textiles gained as much as 18% during intraday trade.
Also Read: Best Long-Term Stocks in Jan 2026 – 5yr CAGR Basis!
Companies with strong US exposure, efficient operations, and value-added products will gain the most. Export-focused apparel makers are expected to see faster order recovery as US buyers shift sourcing.
Top stocks to watch include Gokaldas Exports, Indo Count Industries, Welspun Living, Pearl Global Industries, and KPR Mill. Integrated players like KPR Mill may benefit from better cost control, though cotton prices remain a risk.
The India-US trade deal offers long-term relief to the textile sector after years of weak demand and margin pressure. While select export-driven stocks look attractive, investors should stay selective rather than chasing the entire sector.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 3, 2026, 1:24 PM IST

Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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