Stock Movements Analyzed: Textile & Shrimp Companies

Key Points

• Trade deal talks between India and the US boosted stock prices.
• Lower tariffs could improve textile exports and company performance.
• Shrimp stocks rose due to continued US demand and export potential.
• Tariff increases pose a challenge, impacting company profitability and costs.
• Infrastructure expansion and government programs support aquaculture growth.
• Avanti Feeds sees opportunities in consolidating the aquaculture industry.

On Thursday, companies involved in textiles and shrimp experienced a notable increase in their stock prices. This jump was largely driven by news that India and the United States were close to finalizing a trade agreement. The potential for reduced tariffs is a key factor.

Several textile companies, including Vardhman Textiles, Gokaldas Exports, and Indo Count Industries, saw their shares rise between 4% and 11%. These companies, along with others like KPR Mills, Arvind, Welspun Living, Alok Textiles and Trident, benefited from the anticipated reduction in tariffs. This makes them more competitive compared to countries like Vietnam and Bangladesh, where tariffs are currently much higher.

The deal is likely to be announced during the ASEAN summit in late October. This means India’s share in textile exports will improve in the coming years. However, textile companies’ performance is expected to be weak in Q2 and Q3 of fiscal year 2026 because of high tariffs of 50%.

Meanwhile, shrimp stocks, particularly those of Avanti Feeds and Apex Frozen Foods, also increased. The US remains a major market for Indian shrimp exports, accounting for 48% of the value and 40% of the volume in 2024. The US is a major consumer of Indian shrimp. This continues to drive demand.

Avanti Feeds highlighted challenges in the second half of 2025 due to rising raw material costs and potential reciprocal tariffs from the US. They also pointed to the government’s Pradhan Mantri Matsya Sampada Yojana (PMMSY) program, which supports aquaculture growth in India, with the goal of producing 22 million MT of seafood by FY26.

Despite these challenges, Avanti Feeds believes it is well-positioned to benefit from the growing aquaculture sector, supported by infrastructure expansion and rising domestic seafood consumption.

“A successful trade deal will significantly boost the performance of key textile companies like Gokaldas Exports, Indo Count Industries, and KPR Mills.”