Textile, shrimp stocks up 4% today: Here we decode why
What's the story
Shares of textile and shrimp companies have witnessed a sharp rise of up to 4% today. The surge comes after US President Donald Trump hinted at a possible trade deal with India in the near future. The news has boosted investor sentiment as it is likely to reduce tariffs on Indian exports to the US, significantly benefiting export-oriented sectors such as textiles and shrimp farming.
Trade deal announcement
Trump to finalize trade deal with India soon
Speaking at the Asia-Pacific Economic Cooperation (APEC) CEO Summit in South Korea, Trump said he has "great respect and love for Prime Minister Modi" and that they share a strong relationship. He further revealed, "I am doing a trade deal with India soon."
Market response
Shrimp stocks on the rise
The announcement of a possible trade deal has had a positive impact on export-oriented companies, particularly in the textile and shrimp sectors. Apex Frozen Foods shares surged over 4% to around ₹248 per share, while Coastal Corporation shares rose by over 2%. Avanti Feeds shares also recovered losses and traded in the green after an earlier drop of about 2%.
Stock performance
Textile stocks also gain momentum
Textile stocks also witnessed a significant rise after Trump's announcement. Gokaldas Exports and Pearl Global Industries shares both jumped by around 4%, while Raymond Lifestyle shares gained over 2%. KPR Mill shares, which were trading nearly flat in the red after recovering earlier losses, also showed improvement following the announcement.
Ongoing discussions
Pending issues for Trump's consent in India-US trade talks
Indian negotiators recently held productive talks with their US counterparts on the bilateral trade agreement (BTA). The two sides reached consensus on most issues and are now preparing legal texts. However, some crucial matters still require Trump's consent, including India's sourcing of Russian oil. Despite progress, these details have kept the deal from being finalized.