Indian Textile Stocks Rally As US Tariffs Hit Rivals: SEBI RA Sees Upside In These Three Picks

India's textile stocks rallied on Tuesday after the United States imposed a 35% tariff on garment imports from Bangladesh. US President Donald Trump sent tariff letters to 14 countries last night with steep duties. 

Alok Industries surged 14%, Vardhman Textiles and Gokaldas Exports rose 4%, Welspun Living and KPR Mills gained 2% at the time of writing. 

SEBI-registered analyst Aditya Hujband highlighted that this tariff development is expected to raise sourcing costs for US retailers dependent on Bangladeshi suppliers, making Indian exporters more attractive in comparison. 

Rising Tariffs Across Asia 

Starting August 1, the US has implemented a series of “reciprocal tariffs” ranging from 25% to 40%, targeting multiple low-cost textile-exporting countries, including Bangladesh, Cambodia, Vietnam, Laos, and others.

Hujband added that these tariff changes are set to reshape global sourcing strategies in the apparel sector significantly.

Strategic Window For India 

Analysts from EY India and Mint suggest that the increased US duties on countries such as Bangladesh and Vietnam present an opportunity for India to strengthen its position in the global apparel exports market. However, the extent of this benefit will depend heavily on the outcome of India–U.S. trade negotiations, especially concerning preferential or tariff-free access to the American market. 

Hujband has flagged three textile stocks to watch going ahead: 

KPR Mills

He sees support for KPR Mill at ₹,1120. Watch for a breakout at ₹1,225.

Vardhman Textiles

 Vardhman Textiles could breakout above ₹525, with support at ₹495.

Welspun Living

Watch for a breakout above ₹150 for Welspun Living with support levels at ₹138. 

With the US tightening import terms on several Asian nations, India stands to gain both short-term stock momentum and long-term export potential, provided it secures favorable terms in its trade dialogue with the US, Hujband concluded. 

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