Textile and Leather Stocks Skyrocket on US-India Trade Deal

Textile and leather stocks surged up to 20% after a US-India trade agreement lowered tariffs on Indian goods from 25% to 18%. This bolstered Indian equity markets, impacting sectors like textiles and apparel positively. Major stocks like Gokaldas Exports and Welspun Living saw significant gains.

Textile and leather stocks soared by as much as 20% on Tuesday, responding positively to a groundbreaking trade agreement between India and the United States. Under the deal, Washington agreed to reduce the existing reciprocal tariffs on Indian goods from 25% to 18%.

Gokaldas Exports rocketed by 20%, while Welspun Living saw a substantial hike of 19.85%. Other major gainers included Garware Technical Fibres, up 17.07%, and K P R Mill, surging 15.31%, among others on the BSE. Concurrently, India's BSE Sensex climbed by a staggering 4,205.27 points, peaking during the day.

The deal, confirmed after a conversation between US President Donald Trump and Prime Minister Narendra Modi, is set to ease trading conditions for labor-intensive sectors such as textiles, apparel, leather, and marine, amid previous tariff challenges. The easing of these tariffs is expected to spur broader financial growth in associated industries.

(With inputs from agencies.)