Textile stocks led by KPR Mill, Indo Count surge up to 6% on hopes of US-India trade talks resuming

Shares of India's textile companies, led by KPR Mill Ltd., Welspun Living Ltd., and Indo Count Industries Ltd. surged as much as 6% on Tuesday, September 16, on hopes of resumption of talks between India and the US.

The Commerce Ministry has said that India will be holding talks with Chief US negotiator Brendan Lynch in New Delhi today, who has arrived as part of the ongoing talks between the two countries.

However, it must be noted that this is not a separate round of negotiations between the two countries. The Ministry of External Affairs is also engaged in these talks.

The Sixth round of negotiations between the two countries were postponed last month to a later date.

Trade talks between India and the US had hit an impasse after the Trump Administration imposed an additional 25% tariffs on India, for buying Russian oil, thereby taking the total levy on Indian exports to the US to 50%.



Textiles is one of the biggest hit sectors due to the elevated tariffs as companies from KPR to Welspun to Indo Count, get 50% to 70% of their topline from that region.

However, the recent diplomatic overtures, along with the social media outreach by US President Donald Trump, which was promptly reciprocated by Indian Prime Minister Narendra Modi, has raised hopes that the situation would soon ease out.

Commerce Minister Piyush Goyal, in an exclusive interview to Network18 has maintained that the first tranche of the trade deal with the US will be signed by November, and that there is no reason to panic.

Shares of Indo Count Industries are trading with gains of close to 6% at ₹297.3, while those of KPR Mill are trading 3.9% higher. Welspun Living's shares are also trading with gains of close to 3%.