Today, Textile and IT stocks gained as optimism grew after the US confirmed that ongoing trade negotiations with India may resolve barriers. The development signals improving bilateral ties and potential easing of tariffs, boosting investor sentiment in sectors heavily reliant on US exports and strengthening confidence in India’s trade-driven growth outlook.
US President Donald Trump wrote on Truth Social on Wednesday, “I am pleased to announce that India and the United States of America are continuing negotiations to address the Trade Barriers between our two Nations. I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!”
Further, Prime Minister Modi also responded to Trump by stating that India and the US are natural partners and close friends and that the trade negotiations will pave the way to unlock the limitless potential of the India-US partnership.
Earlier, India-US trade talks faced a setback after the Trump administration imposed an additional 25% tariff, doubling levies on Indian exports to 50%. With over 66% of exports impacted mainly by textiles, seafood, and gems, the move raises concerns over competitiveness, export earnings, and future trade deal prospects, pressuring India’s key sectors.
Furthermore, Markets are also focused on the upcoming US Federal Reserve FOMC meeting on September 16–17, with growing expectations of a rate cut. Weakening jobs data and mounting political pressure from President Trump have intensified calls for easing, raising hopes of supportive monetary policy to stimulate economic growth.
Additionally, a US rate cut could boost discretionary spending, benefiting Indian IT firms that earn significant revenue from the American market. Improved client budgets and demand for technology services may drive stronger growth and profitability in the sector.
Stocks that have gained after the Trump-Modi Trade Talks to Ease US-India Tensions;
| Company Name | CMP | Increased % |
|---|---|---|
| Gokaldas Exports Ltd | 803 | 7% |
| Vardhman Textiles Ltd | 434 | 6% |
| Pearl Global Ltd | 1,391 | 10% |
| Trident Ltd | 29.39 | 5% |
| Welspun Living Ltd | 124.3 | 9% |
| Arvind Ltd | 304.55 | 2% |
| Wipro Ltd | 256.67 | 3.02% |
| Infosys Ltd | 1,527.90 | 2% |
| Oracle Financial Services Software Ltd | 9,184.50 | 9.17% |
| Persistent Systems | 5,361.00 | 5% |
| Tata Consultancy Services | 3,110.00 | 2% |
| Coforge Ltd | 1,767.90 | 4% |
Written by Abhishek Singh
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