Seafood Exports, Specialty Chemicals Stocks Zoom 20% on India-US Trade Deal

Shares of Seafood exports and specialty chemicals-related companies jumped 20 per cent on Tuesday after India and the US agreed to a trade deal under which Washington will reduce the reciprocal tariff on Indian goods to 18 per cent from the current 25 per cent.

From the seafood exports pack, Avanti Feeds and Apex Frozen Foods surged 20 per cent each to close at Rs 960.60 and Rs 351.10 apiece, also touching its upper circuit limit, respectively.

The scrip of Zeal Aqua jumped 10.58 per cent to settle at Rs 11.29 apiece, while Kings Infra Ventures by 7.64 per cent to Rs 138.10, Mukka Proteins by 5.01 per cent to Rs 24.10.

Coastal Corporation advanced 5 per cent to Rs 47.72, also hitting its upper circuit limit.

Among speciality chemicals stocks, Aarti Industries surged 15.10 per cent to settle at Rs 429.50 per share, Gujarat Fluorochemicals soared 6.82 per cent to Rs 3,260.70, Navin Fluorine International jumped 6.22 per cent to end at Rs 6,273.05, Neogen Chemicals by 6.19 per cent to Rs 1,337.40 on the BSE.

Shares of Atul Ltd soared 5.25 per cent to close at Rs 6,275.60 per scrip, Vinati Organics climbed 4.67 per cent to Rs 1,563.70, SRF Ltd stock increased 3.76 per cent to finish at Rs 2,907.70 per piece, and Acutaas Chemicals rose 1.26 per cent to 1,960.05 on the exchange.

Meanwhile, the 30-share BSE Sensex zoomed 2,072.67 points, or 2.54 per cent, to close at 83,739.13. The broader NSE Nifty surged 639.15 points, or 2.55 per cent, to settle at 25,727.55.

India and the US have agreed to a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18 per cent from the current 25 per cent, US President Donald Trump said on Monday after a phone conversation with Prime Minister Narendra Modi.

The announcement assumes significance as several labour-intensive sectors like textiles, apparel, leather and marine were facing challenges to export goods to the US due to the 50 per cent tariffs.

Meanwhile, the Seafood Exporters' Association of India (SEAI) said on Tuesday, following months of declining shipments, that India's seafood exports to the United States are expected to recover after Washington agreed to cut tariffs to 18 per cent from 25 per cent.

Munjal Almoula, Managing Partner, Tax & Regulatory Advisory, BDO India, said, "The recent announcement of a reduction in the US tariffs to 18 per cent is a welcome announcement, relieving some pressures on India-US trade dynamics. For important exports like pharmaceuticals, IT services, and textiles, this adjustment down from higher proposed levels, reduces cost escalations." "This announcement on the back of the Union Budget and the India-EU trade deal puts India Inc firmly on the road to PM Modi's goal of Viksit Bharat. India's time is here and now," Almoula, added.