Textile, Leather Stocks Jump on India-US Trade Deal

Textile and leather stocks surged as much as 20 per cent on Tuesday after India and the US agreed to a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from the current 25 per cent.

Shares of Gokaldas Exports skyrocketed 20 per cent, Welspun Living jumped 19.85 per cent, Garware Technical Fibres zoomed 17.07 per cent and K P R Mill surged 15.31 per cent on the BSE.

The stock of S P Apparels jumped 14.19 per cent, Vardhman Textiles advanced 12.12 per cent, Trident edged higher by 11.27 per cent, Arvind Ltd shot up 10.23 per cent, Page Industries went up 3.79 per cent and Raymond Lifestyle climbed 3.39 per cent.

Gokaldas Exports, S P Apparels, Welspun Living, Garware Technical Fibres and K P R Mill hit their upper circuit limits during the day.

After starting the trade on a buoyant note, the 30-share BSE Sensex further jumped 4,205.27 points, or 5.14 per cent, to hit the day's high of 85,871.73. It later ended at 83,739.13, up 2,072.67 points, or 2.54 per cent.

The 50-share NSE Nifty zoomed 639.15 points, or 2.55 per cent, to settle at 25,727.55. During the day, it surged 1,252.8 points, or 4.99 per cent, to 26,341.20.

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

Among leather and footwear stocks, Bhartiya International jumped 6.37 per cent, Mayur Uniquoters surged 7.73 per cent, Metro Brands (0.41 per cent) and Bata India (0.23 per cent).

"Overall, this deal is a major positive for Indian equity markets," Sunny Agrawal -- Head of Fundamental Research at SBI Securities, said.

We are seeing tariffs reduced significantly, which is excellent news for sectors like textiles, seafood, chemicals, auto ancillaries, and new energy businesses like solar, Agrawal said.

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.

India's merchandise exports to the US declined 1.83 per cent to USD 6.88 billion in December 2025 due to high tariffs imposed by America, according to commerce ministry data.

"Indian equities witnessed one of the biggest single-day gains on Tuesday after India and the US announced a long-awaited trade deal, easing tariff-related concerns that have weighed on Indian markets since April 2025. Key beneficiaries include auto ancillaries, defence, textiles, EMS, consumer durables, IT services, and utilities, while financials could see second-order gains through improved growth visibility," Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.