The Indian textile stocks surged as much as 15.5% after the US imposed a 35% tariff on Bangladesh. This led to an increase in the share price of domestic textile stocks on expectations of additional orders.
The share price of Alok Industries surged more than 15% to an intra-day high of Rs 23.19. The stock price of Gokaldas Exports rose 8.2% to a high of Rs 974.70 on the BSE. Siyaram Silk Mills’ shares were up 5% at Rs 733.90, while those of Vardhaman Textiles were up 4.3% at Rs 519.50.
Other textile stocks like Sanathan Textiles, Trident, KPR Mill, Welspun Living, Monte Carlo Fashions, Dollar Industries, and many others followed suit.
US slaps tariffs on Bangladesh
Not long after introducing tariffs on South Korea and Japan, US President Donald Trump announced a new set of tariffs on 12 other countries, set to start on August 1. Trump conveyed the details of the tariffs in formal letters addressed to the leaders of the nations.
He shared them on Truth Social, describing them as “a wave of letters” intended to realign US trade relationships. Additionally, he cautioned against any actions taken in retaliation.
Bangladesh is set to continue discussions with the US to advocate for larger tariff reductions, as Trump slapped a 35% import charge on goods from the South Asian countries.
There have been only two agreements agreed upon till now, the one with Britain and the other with Vietnam.
Mood across Indian stock markets
The Indian domestic equity indices opened the trade on a flat note with a negative bias as the investors remained watchful about tariff-related announcements.
The Nifty 50 was trading flat at 24,560, while the 30-pack Sensex surged a mere 17 points or 0.02% to trade at 83,471. However, the banking stocks outperformed the overall market, but the mid and smallcaps were under pressure.