Indian textile stocks like Kitex, Pearl Global, KPR Mill, and Welspun Living fell up to 7% on Friday as investors reacted to the latest tariff shift by the US administration under President Donald Trump. The move reduced import duties on Bangladeshi goods to 20% from 35%, intensifying pressure on Indian exporters in a key market.
The announcement triggered broad-based selling across apparel-linked counters. Shares of Gokaldas Exports dropped as much as 3.1% to Rs 824.50, while Pearl Global Industries declined 7.2% to Rs 1,380.05. Arvind Ltd slipped 1.8% to Rs 310.40, and Welspun Living fell 1.9% to Rs 123.80. Meanwhile, KPR Mill was down 4.3% at Rs 1,092.
Companies such as Welspun Living, Gokaldas Exports, Indo Count Industries, and Trident derive 40–70% of their revenue from the US, and now face adverse positioning against global competitors.
Kitex Garments, which earns 70% of its revenue from the U.S. market, slipped 5%. Shares of other textile firms like Trident and Indo Count Industries also fell between 1% and 2.5%.
Margin pressure mounts amid shifting tariff regime
Bangladesh’s reduced duty now matches Vietnam’s 20% rate, following Hanoi’s recent trade arrangement with Washington. India, however, continues to face a 25% tariff on textile exports to the US, with additional penalties yet to be fully clarified by US authorities.
This sharper duty disadvantage is expected to weigh on Indian exporters’ margins and pricing power – especially in segments where Bangladesh and Vietnam dominate due to cost efficiencies. India competes directly with both in mass-market garment exports to the US, a critical revenue stream for several listed firms.
Companies such as Gokaldas Exports and Pearl Global generate 50-70% of their revenue from the US market. Arvind Ltd and KPR Mill also have significant exposure, with about 30% and 21% of their topline, respectively, tied to US demand.
“For Indian exporters in gems, textiles, and auto parts, the impact is immediate and harsh: sectors already operating on slim margins now face a 7-10% cost disadvantage compared to rivals like Vietnam,” said Akshat Garg, AVP, Choice Wealth.
Friday’s slide extends broader losses
The correction in textile stocks deepened a rout that began on Thursday, when Pearl Global shed over 7% and Gokaldas Exports declined more than 4.5%. KPR Mill fell over 3%, while Welspun Living ended nearly 4% lower after a brief intraday rebound.
The sector, once buoyed by a short-lived advantage over Bangladesh, now faces renewed uncertainty on global pricing competitiveness.
Also read | Trump tariff assault hits over 40 Indian stocks. Full list across key sectors for stock market investors
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
The announcement triggered broad-based selling across apparel-linked counters. Shares of Gokaldas Exports dropped as much as 3.1% to Rs 824.50, while Pearl Global Industries declined 7.2% to Rs 1,380.05. Arvind Ltd slipped 1.8% to Rs 310.40, and Welspun Living fell 1.9% to Rs 123.80. Meanwhile, KPR Mill was down 4.3% at Rs 1,092.
Companies such as Welspun Living, Gokaldas Exports, Indo Count Industries, and Trident derive 40–70% of their revenue from the US, and now face adverse positioning against global competitors.
Kitex Garments, which earns 70% of its revenue from the U.S. market, slipped 5%. Shares of other textile firms like Trident and Indo Count Industries also fell between 1% and 2.5%.
Margin pressure mounts amid shifting tariff regime
Bangladesh’s reduced duty now matches Vietnam’s 20% rate, following Hanoi’s recent trade arrangement with Washington. India, however, continues to face a 25% tariff on textile exports to the US, with additional penalties yet to be fully clarified by US authorities.
This sharper duty disadvantage is expected to weigh on Indian exporters’ margins and pricing power – especially in segments where Bangladesh and Vietnam dominate due to cost efficiencies. India competes directly with both in mass-market garment exports to the US, a critical revenue stream for several listed firms.
Companies such as Gokaldas Exports and Pearl Global generate 50-70% of their revenue from the US market. Arvind Ltd and KPR Mill also have significant exposure, with about 30% and 21% of their topline, respectively, tied to US demand.
“For Indian exporters in gems, textiles, and auto parts, the impact is immediate and harsh: sectors already operating on slim margins now face a 7-10% cost disadvantage compared to rivals like Vietnam,” said Akshat Garg, AVP, Choice Wealth.
Friday’s slide extends broader losses
The correction in textile stocks deepened a rout that began on Thursday, when Pearl Global shed over 7% and Gokaldas Exports declined more than 4.5%. KPR Mill fell over 3%, while Welspun Living ended nearly 4% lower after a brief intraday rebound.
The sector, once buoyed by a short-lived advantage over Bangladesh, now faces renewed uncertainty on global pricing competitiveness.
Also read | Trump tariff assault hits over 40 Indian stocks. Full list across key sectors for stock market investors
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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