Textile stocks were in focus on Monday, February 23 led by Kitex Garments that rose by 10.4%, Welspun Living increased by 4.2%, and Trident climbed by 7.5% after the US Supreme Court declared the Trump tariffs illegal.
Shortly after this decision, former President Trump announced a new 15% global tariff that would affect all countries.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, believes this new 15% global tariff, introduced under section 122, will face legal challenges.
Vijayakumar predicts a strong chance that the tariff will be canceled because section 122 allows the president to impose tariffs only during a serious Balance of Payments crisis, which the US currently does not have.
India previously faced tariffs of around 18%, while Bangladesh’s tariffs were set at 19% and Vietnam’s at 20%. This provided Indian exporters with a competitive edge. However, the introduction of a uniform global tariff of 15% for 150 days has eliminated this advantage, placing all competing exporters on a more equal footing, believes analysts.
Market expert Sunil Subramaniam firmly pointed out in a Moneycontrol news report that sectors were previously burdened by duties ranging from 18% to as high as 50%. The recent reduction in tariffs is undoubtedly a positive development, as it alleviates margin pressure significantly.
Furthermore, small- and mid-cap engineering firms, which have seen their export order books shrink sharply, are poised for recovery as a result of this change.
Technicals Views
Ruchit Jain, VP – Head of Equity Technical Research, Motilal Oswal Financial Services, said that recently there has been some positive momentum in the textile stocks on back of India US trade deal which could boost textile exports. The stocks from this sector have gone through a long consolidation phase and the recent price volume action indicates buying interest and hence a stock specific momentum can be seen in the short term.
Further, Anshul Jain, Head of Research at Lakshmishree explained that Within textiles, Welspun Living Limited has been locked in a 42-week range between 152 and 109, reflecting prolonged equilibrium rather than trend. Price remains far from breakout, but a decisive breach above 152 would confirm range resolution and open a measured move toward 175. Volume expansion at the pivot will be critical to validate momentum.
Meanwhile, Vardhman Textiles Limited presents a stronger higher-timeframe setup. The stock has consolidated for nearly 213 weeks, building a long base with a breakout pivot near 550. A sustained move above this level projects an upside toward 700, supported by improving structure and tightening volatility, said Jain.
“From a risk–reward perspective, VTL offers a broader structural breakout, while Welspun provides a tactical range play. Both remain bullish on confirmed breakouts with volume follow-through,” added Jain.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
