New Delhi, Feb 3 (PTI) Textile and leather stocks surged as much as 20 per cent on Tuesday morning after India and the US agreed to a trade deal under which Washington will bring down reciprocal tariff
on Indian goods to 18 per cent from current 25 per cent.
Shares of K P R Mill surged 20 per cent, Garware Technical Fibres zoomed 20 per cent, Welspun Living jumped 19.85 per cent, Vardhman Textiles soared 19.60 per cent, Trident jumped 19.52 per cent, Raymond Lifestyle climbed 9.56 per cent and Page Industries climbed 5.31 per cent on the BSE.
The 30-share BSE Sensex jumped 1,928.91 points to 83,595.37 in morning trade. The 50-share NSE Nifty traded 587.60 points higher at 25,760.
India and the US have agreed to a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from current 25 per cent, US President Donald Trump said on Monday after a phone conversation with Prime Minister Narendra Modi.
Among leather and footwear stocks, Bhartiya International jumped 10.70 per cent, Mayur Uniquoters surged 7.39 per cent, Bata India climbed 5 per cent and Metro Brands went up by 3.96 per cent.
"The agreement reduces reciprocal US tariffs on Indian goods from 25 per cent to 18 per cent, removing a major overhang that had weighed on export-oriented sectors, manufacturing, and overall market sentiment in recent months," Ponmudi R, CEO of Enrich Money, said.
The announcement assumes significance as several labour-intensive sectors like textiles, apparel, leather and marine were facing challenges to export goods to the US due to the 50 per cent tariffs.
India's merchandise exports to the US declined 1.83 per cent to USD 6.88 billion in December 2025 due to high tariffs imposed by America, according to Commerce Ministry data. PTI SUM
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