Textile stocks in limelight; Filatex India zooms over 12 pc

Textile stocks were in the limelight on Wednesday, led by Filatex India which jumped over 12 per cent after the Cabinet approved the production-linked incentive (PLI) scheme worth Rs 10,683 crore for the sector.

Shares of Filatex India zoomed 12.12 per cent, Alok Industries jumped 7.08 per cent, Sutlej Textiles and Industries 6.63 per cent, Arvind Limited 5.48 per cent, Vardhman Polytex 4.99 per cent and Trident rose by 4.87 per cent on the BSE.

''The Cabinet's approval of PLI scheme for man-made fibres and technical textiles will help in improving the industry's outlook,'' said Vinod Nair, head (research) at Geojit Financial Services.

The Cabinet on Wednesday approved a production-linked incentive (PLI) scheme worth Rs 10,683 crore for the textiles sector with an aim to boost domestic manufacturing and exports.

The Cabinet ''has approved the PLI scheme for textiles for MMF (man-made fibre) apparel, MMF fabrics and 10 segments/ products of technical textiles with a budgetary outlay of Rs 10,683 crore,'' Textiles Minister Piyush Goyal told reporters here.

The PLI scheme for textiles is part of the overall announcement of the scheme for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs. 1.97 lakh crore.

The scheme for textiles will help promote production of high-value MMF fabric, garments and technical textiles in the country.

The incentive structure has been so formulated that the industry will be encouraged to invest in fresh capacities in these segments, he said. This will give a major push to growing high-value MMF segment, which will complement the efforts of cotton and other natural fibre-based textile industries in generating new opportunities for employment and trade, he added. ''The broader markets witnessed interest in textile stocks on the back of the PLI scheme announced today,'' S Ranganathan, head (research) at LKP Securities, said.