Export-focused shrimp and textile companies experienced significant gains following the India-US trade agreement announcement. Avanti Feeds surged 20%, aided by its strong exposure to North America, which accounted for 65.4% of total sales in Q1 FY25, while Apex Frozen Foods jumped 17%, with the US contributing 53% of its export sales in FY25. According to Moneycontrol, Gokaldas Exports climbed 20% to hit an intraday high of ₹832.85, with the stock opening with a gap-up gain of 12.15% and rising over 41% in the past two sessions. K.P.R. Mill gained 2.62% to ₹1,014.90, Indo Count Industries jumped around 11%, and Arvind advanced over 2%, as investors bet on a pickup in demand from the US market. Kitex Garments was up about 12%, with the strong buying activity witnessed after India and the United States signed a trade deal, with the agreement announced by US President Donald Trump and Prime Minister Narendra Modi. However, recent trading data shows mixed reactions with Avanti Feeds ending Monday 2.35% higher at around ₹797-₹800, while Apex Frozen Foods saw a slight dip of 0.42% and Coastal Corporation also finished in the red. The latest development includes Societe Generale entering Gokaldas Exports with a ₹41 crore bulk deal, purchasing over 5 lakh shares at ₹807.18 per share, as the stock continues to rally on the India-US trade deal benefits.
Under the new agreement, the US President announced a trade deal that lowers the reciprocal tariff on Indian goods from 50% to 18%, directly affecting shrimp and textile exports which had previously faced higher duties in the United States. As reported by Moneycontrol, ICICI Securities notes that the cut in US tariffs to 18% from 50% earlier gives India a competitive edge over other Asian exporters, where tariff rates range between 19% and 30%. In return, India will move forward with cutting its tariff and non-tariff barriers on US goods to zero. The deal removes a key overhang that had kept foreign investors cautious and pushed equities into a phase of prolonged underperformance, with Indian markets struggling through January. The 18% tariff places India more competitively against rivals like Ecuador (15%) and Vietnam (20%) in the global shrimp export market, while reduced tariffs enhance price competitiveness against peers such as China and Bangladesh in the textile sector. The combined effect of the US tariff reduction and the EU trade agreement triggered strong buying across multiple export-oriented sectors.
Shrimp and textile stocks had borne the brunt of selling since the announcement of reciprocal tariffs and trade deals between the US and other countries, given the sectors' heavy dependence on the American market. According to The Economic Times, the US accounts for nearly 48% of exports for Indian shrimp exporters, with the US remaining India's most crucial market for frozen shrimp, accounting for 41% of export volumes and 48% of export value in FY25, with annual exports around 250,000 metric tonnes valued at approximately $2.5 billion. For textiles, the US accounts for nearly 28% of India's textile and apparel exports, making the tariff reduction particularly significant. With a 50% tariff, India had emerged as one of the highest-taxed major shrimp suppliers to the US, while elevated duties had weighed on demand from the US market for textile exporters. The combined impact of the US tariff reduction and the EU trade agreement is expected to provide additional market access for Indian exporters, with the India-EU free trade agreement recorded trade of $136.5 billion in the financial year ended March 2025.
The tariff reduction is expected to restore lost competitiveness and market share for major exporters. Avanti Feeds, a leader in shrimp feed and processing with a market cap around ₹10,900 crore, shows a P/E of approximately 16.3-17.6 and a solid ROE of around 19.5%-22.5%, despite reported slow sales growth over five years. Apex Frozen Foods, with a market cap of ~₹925 crore, faces a higher P/E of around 40.7-44.1 and a significantly lower ROE of ~0.76%-4.46%, coupled with a history of poor sales growth and reliance on other income. Coastal Corporation, valued at ~₹308 crore, exhibits a P/E of ~29.7 but suffers from a low ROE of 1.71%-3.81% and poor historical sales growth. IFB Agro Industries hit its lower circuit limit at ₹1,177.7 on February 2, 2026, indicating distinct challenges for some players. According to Fortune India, the deal removes a key overhang on exports, improves earnings visibility for several labour-intensive sectors, and could support India's nominal GDP growth by an estimated 50–80 bps while also aiding currency stability through potential FPI flow reversal.
The agreement alongside the free trade agreement with the European Union concluded days earlier, India now has robust trade agreements with two of the world's largest trading blocs—a first in the country's economic history. As reported by Fortune India, Prime Minister Narendra Modi thanked President Trump, writing on X that "Delighted that Made in India products will now have a reduced tariff of 18%." The reduction in US tariffs is expected to enable Indian exporters to regain lost market share, alleviate inventory build-up, and reduce working capital stress, potentially leading to meaningful improvement in earnings visibility. For textiles, the impact is particularly significant given the US is one of the largest end markets for Indian apparel and home textiles. Higher volumes, better capacity utilisation, and operating leverage could gradually translate into margin recovery and more stable earnings for exporters, with the combined effect of the US tariff reduction and the EU trade agreement expected to provide additional market access. The deal includes over $500 billion in commitments for US energy, technology, agricultural products, and coal, with President Trump noting that India agreed to stop buying Russian oil and "buy American" products at unprecedented levels.
