Tariff Cut to 18 Percent Lifts Export Focused Sectors
Textile and leather stocks surged sharply in early trade on Tuesday after India and the United States reached a trade agreement under which Washington will reduce reciprocal tariffs on Indian goods to 18 percent from the earlier 25 percent level. The development triggered strong buying interest across export oriented segments, particularly labour intensive industries.Textile Stocks Record Broad Based Gains
Several textile stocks posted strong gains on the BSE during morning trade. Shares of K P R Mill surged 20 percent, while Garware Technical Fibres also jumped 20 percent. Welspun Living climbed 19.85 percent, Vardhman Textiles gained 19.60 percent, and Trident rose 19.52 percent.Other notable gainers included Raymond Lifestyle, which advanced 9.56 percent, and Page Industries, which moved up 5.31 percent.
Leather and Footwear Stocks Also Move Higher
Leather and footwear stocks also witnessed positive momentum following the trade announcement. Bhartiya International jumped 10.70 percent, Mayur Uniquoters surged 7.39 percent, Bata India climbed 5 percent, while Metro Brands gained 3.96 percent.Broader Market Joins the Rally
The positive sentiment extended to the broader market as well. The BSE Sensex jumped 1,928.91 points to 83,595.37 in morning trade, while the NSE Nifty traded 587.60 points higher, reflecting strong investor confidence following the trade deal announcement.Trade Deal Brings Relief to Export Oriented Sectors
The agreement comes at a crucial time for export driven sectors such as textiles, apparel, leather, and marine products, which had been facing significant challenges in accessing the US market due to elevated tariff levels. These higher duties had weighed on export competitiveness and overall sector performance in recent months.India’s merchandise exports to the United States declined by 1.83 percent to USD 6.88 billion in December 2025, reflecting the impact of the earlier tariff structure. The reduction in reciprocal tariffs is expected to ease pressure on exporters and improve trade flows going forward.
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