Textile stocks witnessed a sharp rally on September 16, 2025, as optimism around renewed US-India trade talks lifted investor sentiment. Shares of leading players like KPR Mill, Indo Count, Trident, and Welspun Living jumped 5–7% amid expectations that easing tariffs and trade barriers could revive export momentum. The surge comes at a critical time for the sector, which has been reeling under higher US duties and intense global competition.

Synopsis

• Shares of Indian textile firms like KPR Mill, Indo Count, and Welspun Living jumped ~5‑7% after optimism about revived US‑India trade negotiations.
• Investors expect easing of tariffs and trade barriers, possibly improving export terms.
• The sector has been under pressure since the US raised tariff rates on Indian goods to 50%.
• Key risks remain: delay in talks, lack of clarity on which goods will see relief, and competitiveness with other exporters.
• If talks succeed, textile exporters may see gains in margin and order books; if not, volatility could return.

The Surge: What Happened

On September 16, 2025, textile stocks in Indian textile companies — including KPR Mill, Indo Count, Trident, Raymond Lifestyle, Gokaldas Exports, and Welspun Living — surged by up to 7%. This rally was driven by growing investor hope that US‑India trade negotiations might deliver relief from recent tariff hikes or trade barriers that have squeezed the sector.

Underlying Factors Fueling Optimism

US‑India Talks: Where Things Stand

US President Donald Trump made statements indicating that trade talks with India are still on, including potential revision of tariff policies. India has expressed willingness to negotiate, especially around easing non‑tariff barriers and clarifying export terms.

Sector‑Specific Levers & Pressure Points

• Export Dependency: Indian textile firms derive significant revenue from exports to the US; any waiver or tariff relief could immediately boost profit margins.
• Cost Pressures: Raw material, logistics, freight, and compliance costs remain high, so the margin buffer is thin unless more favorable trade terms emerge.
• Competition: Countries like Bangladesh, Vietnam, and others with lower costs may capture market share if India’s export terms remain restrictive.

Risks & What Could Go Wrong

• Negotiation Delay or Stalemate: Trade talks are complex, and finalizing agreements takes time. Delay could lead to investor disappointment.
• Partial Relief: Even if talks succeed, relief may be limited to certain product categories, leaving many firms still under tariff pressure.
• Policy Uncertainty: Changes in US politics or rhetoric could reverse any positive momentum overnight.

What This Means for Investors & Industry

If the negotiations yield tangible easing: textile stocks could see improved earnings, revived export orders, and increased attractiveness for foreign investment. On the other hand, companies that are overly exposed to high‑tariff categories, lack scale, or are dependent on US demand will remain vulnerable.

In conclusion, textile stocks are riding on hopes that US-India trade negotiations will ease the tariff burden and create a more favorable export environment. While the recent rally highlights investor optimism, the sector’s future performance hinges on the pace and scope of policy outcomes. Even modest relief could lift margins and improve competitiveness against global peers, but risks of delays, partial relief, or policy reversals remain. For investors, the key is balancing short-term volatility with long-term potential. Monitoring official trade updates and company-specific resilience will be crucial in determining whether this rally has lasting strength.

Opinion: It seems plausible that modest relief (in form of tariff reductions or phased rollback) will occur, given mutual strategic interests; however, investors should avoid assuming a complete turnaround without evidence—keeping an eye on official communiqués, trade negotiation updates, and policy signals.

Disclaimer: This article is for informational purposes only. The views expressed are those of the author and do not necessarily represent the views of EqMint. No liability of any kind shall be assumed by EqMint for the information presented here.

References

Economic Times – Textile stocks surge up to 7% on India‑US trade hopes
CapitalMarket.com – Textile exporters rally on hopes of easing India US trade barriers
Economic Times – Gokaldas Exports, KPR Mill and others in focus after Trump tariffs