Indian textile stocks surge after US tariffs on Bangladesh

July 08, 2025 (MLN): A sharp rally was seen in Indian textile stocks after the United States imposed a 35% import tariff on goods from Bangladesh, sparking expectations of increased order flow to domestic manufacturers.

Alok Industries led the surge, gaining over 15% to touch an intra-day high of ₹23.19.

Gokaldas Exports also climbed 8.2% to ₹974.70 on the BSE.

Siyaram Silk Mills rose 5% to ₹733.90, while Vardhaman Textiles advanced 4.3% to ₹519.50.

The broader textile sector saw bullish sentiment with stocks like Sanathan Textiles, Trident, KPR Mill, Welspun Living, Monte Carlo Fashions, and Dollar Industries all posting gains.

This market response came after former US President Donald Trump introduced a new wave of tariff measures targeting 12 additional countries, including Bangladesh.

These tariffs, announced via formal letters to national leaders and shared on Truth Social, are scheduled to take effect on August 1.

Trump described the letters as part of a broader effort to reshape US trade relations and warned against retaliation.

In the wake of the announcement, Bangladesh is continuing negotiations with the US in an attempt to secure broader tariff relief.

So far, only the UK and Vietnam have successfully reached agreements.

Despite gains in the textile space, Indian equity markets opened with a cautious tone.

The Nifty 50 hovered at 24,560, while the Sensex edged up just 17 points to 83,471.

Banking stocks outperformed, though midcap and smallcap indices remained under pressure.

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