Textile Stocks Rally: Retail investor patience pays off but a long way to go still

Textile stocks led by Gokaldas Exports, Welspun Living, KPR Mill, and others gained as much as 20% in early trading on Tuesday, February 3, after India and the US announced a long-awaited trade agreement on Monday evening.

Gokaldas Exports and peers were the most impacted after US President Donald Trump imposed a 25% tariff on Indian exports in August last year, and then went on to increase it to 50% before the trade deal was announced last evening.

As of Monday's closing, shares of Gokaldas Exports, Welspun Living, Indo Count Industries were down between 10% to as much as 30% from their respective closing levels on April 2, 2025, which is when the the Liberation Day tariffs were announced by President Trump.

The deal holds significance for these companies as they derive anywhere between 50% to 70% of their topline from the US market. You can read more on that here.

Even as the stocks fell from record high levels, retail investors continued to repose faith in these companies. Most of the textile stocks have seen an increase in retail shareholding, or those with authorised share capital of ₹2 lakh, between March 2025 and December 2025.

Stock	March 2025 (%)	December 2025 (%)
Gokaldas Exports	10.77	11.88
Welspun Living	8.08	8.61
Indo Count Industries	11.49	11.93
Arvind	12.32	13.18

The numbers highlighted above are based on the shareholding pattern shared by the respective companies on the Bombay Stock Exchange (BSE).

Similarly, India's domestic Mutual Funds also reposed faith in these textile stocks, increasing their shareholding over the last 10-odd months. Gokaldas Exports, which saw the biggest impact in terms of Stock price fall, also saw Mutual Funds doubling down on the name during this period of uncertainty.

MF Shareholding In	March 2025 (%)	December 2025 (%)
Gokaldas Exports	10.77	11.88
Welspun Living	8.08	8.61
Indo Count Industries	11.49	11.93
Arvind	12.32	13.18

Even as these stocks are cheering the trade deal, they are still a long way away from their respective record high levels. Shares of Gokaldas Exports are still down 55% from their record high levels, while the others are down anywhere between 30% to 45%.

Stock	From Record High (%)
Gokaldas Exports	-55
Welspun Living	-43
Indo Count Industries	-47
Arvind	-28