On February 1st, Indian textile stocks experienced a surge after Finance Minister Nirmala Sitharaman announced a five-year mission aimed enhancing the productivity and sustainability of cotton farming during her budget speech.
Sitharaman introduced a ‘Mission for Cotton Productivity’ designed to benefit millions of cotton farmers. This initiative will focus on improve both the productivity and sustainability of cotton farming and will promote the cultivation of extra-long staple (ELS) cotton varieties.
The mission is expected to provide advanced scientific and technologic support to farmers, aligning with the government’s integrated 5F vision for the textile sector. The initiative aims to boost farmers’ incomes and ensure a steady supply of high-quality cotton, which is crucial for revitalizing India’s traditional textile industry.
Additionally, the Finance Minister proposed the inclusion of two more types of shuttle-less looms in the list of fully exempted textile machinery. This move is intended to promote the domestic production of technical textile products, such as agro-textiles, medical textiles, and geo-textiles, at competitive prices.
Sitharaman also proposed revising the Basic Customs Duty (BCD) rate on knitted fabrics, covering nine tariff lines, from “10% or 20%” to “20% or Rs. 115 per kg, whichever is higher.”
Here are a few textile stocks that saw gains of up to 10 percent:
1. Vardhman Textiles Limited
With a market cap of Rs. 13,099.6 crores, the stock moved up nearly 4 percent on BSE to hit an intraday high at Rs. 473.65, during the special trading session of Saturday.
Vardhman Textiles Limited is engaged in the business of manufacturing of cotton yarn, synthetic yarn and woven fabric.
2. Nitin Spinners Limited
With a market cap of Rs. 2,244 crores, the stock moved up nearly 6 percent on BSE to hit an intraday high at Rs. 435, during the special trading session of Saturday.
The company is engaged in the manufacturing of cotton and blended yarn, knitted fabrics and woven fabrics.
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3. Sri Ramakrishna Mills (Coimbatore) Limited
With a market cap of Rs. 39.8 crores, the stock moved up nearly 8 percent on BSE to hit an intraday high at Rs. 58, during the special trading session of Saturday.
Sri Ramakrishna Mills has a spinning unit with 94,000 spindles and 1,440 rotors in Coimbatore, with a wide range of pure cotton and blended yarns.
4. Ambika Cotton Mills Limited
With a market cap of Rs. 846.4 crores, the stock moved up nearly 10 percent on BSE to hit an intraday high at Rs. 1,674.95, during the special trading session of Saturday.
Ambika Cotton Mills Limited is engaged in manufacturing and selling speciality cotton yarn catering to the needs of manufacturers of premium branded shirts and t-shirts.
5. Shree Bhavya Fabrics Limited
With a market cap of Rs. 25.6 crores, the stock moved up nearly 10 percent on BSE to hit an intraday high at Rs. 28, during the special trading session of Saturday.
Incorporated in 1988, Shree Bhavya Fabrics Limited is engaged in the business of textile and related textile products.
Written by Shivani Singh
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