Textile and seafood stocks witnessed significant movement on Tuesday following the roll-out of a refund mechanism for businesses that had earlier paid tariffs later deemed unconstitutional by the US Supreme Court. According to reports from The Hindu BusinessLine, the court had ruled that former US President Donald Trump imposed these tariffs without the necessary constitutional authority, prompting corrective action in the form of reimbursements.
Market activity reflected mixed sentiment across the sector, with Gokaldas Exports emerging as a strong gainer, settling 6.66% higher at ₹768.65, while Coastal Corporation also saw buying interest, with its shares ending the session 5% higher at ₹53.25. However, shares of Avanti Feeds and Apex Frozen Foods came under selling pressure by the close, even after touching their respective 52-week highs during early trading hours, indicating profit-booking at elevated levels.
As reported by The Hindu BusinessLine, Apex Frozen Foods ended 2% lower at ₹474.80 on the BSE, hitting a 52-week high of ₹514.20 from the previous close of ₹483.65. Similarly, Avanti Feeds was down 2.28% to close at ₹1,464.85 on the BSE, hitting a 52-week high of ₹1,592.30 in early trade. The decline despite hitting highs suggests profit-booking activity at elevated price levels.
The refund initiative is expected to provide a meaningful boost to exporters in both the textile and seafood segments, as reported by The Hindu BusinessLine. By recovering previously paid tariffs, companies could see improved cash flows and margins, enabling reinvestment into operations and enhancing global competitiveness. This corrective action addresses the constitutional concerns that previously impacted trade relationships between India and the US.
