Shares of several textile companies, including Gokaldas Exports, Kitex Garments, KPR Mill, and Alok Industries, declined sharply on Thursday after US President Donald Trump announced an additional 25% tariff on Indian goods. The latest move brings the total tariff burden on Indian exports to 50%.
Kitex Garments share price extended its losing streak for the 11th consecutive session and was locked in a 5% lower circuit for the third straight day. KPR Mill shares plunged 6.18%, while Gokaldas Exports shares fell as much as 3.86%, and Indo Count Industries stock price dropped 3.15%. Welspun Living and Pearl Global Industries declined 3.7% each.
The additional tariffs have been described by the US administration as a “penalty” for India’s continued imports of Russian crude oil. With these duties now 20% higher than those on Chinese goods, analysts warn that India’s export competitiveness could take a significant hit.
Export-oriented sectors such as textiles, IT services, engineering goods, and auto components are expected to bear the brunt of the fresh US tariffs, according to market experts.
“The most-impacted sectors are textiles (Gokaldas Exports and Kitex Garments), chemicals (Camlin Fine Sciences, Aarti Industries, and Atul Ltd), and auto ancillaries (Bharat Forge, Suprajit Engineering, and Sona BLW Precision Forgings), all of which have significant export exposure to the US,” said Seshadri Sen, Head of Research and Strategist at Emkay Global Financial Services.
Gokaldas Exports derives nearly 70% of its total revenue from the US market. Indo Count Industries has a similar exposure, while US sales contribute about 65% and 50% to the revenues of Welspun Living and Pearl Global Industries, respectively.
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