Welspun India, Nitin Spinners, Monte Carlo and other textile stocks grow up to 14% in a week - heres why
The government has estimated that the textile industry may grow by three times in the next eight years and aim to make it a $300 billion industry by 2030 from $100 billion at present.
Textile companies shares such as Welspun India, Nahar Spinning, Nitin Spinners, and Monte Carlo among others have witnessed a stellar rally in the last one week on the back of multiple positive factors, including lower cotton prices and the government’s push to make India a textile hub.
Individually, Nitin Spinners – an ace investor Dolly Khanna owned stock – grew by around 14.5 per cent, followed by Monte Carlo up by almost 10.5 per cent, while Welspun India, Nahar Spinning each surged nearly 10 per cent on the NSE in the last one week.
Similarly, Indo Rama Synthetics and SP Apparels were each up around 7 per cent, and Himatsingka shares grew by 5 per cent on the NSE during a one-week period.
The majority of the textile stocks closed in the green, between 3-7 per cent higher on Wednesday.
What led to a rally in textile stocks?
The government estimated that the textile industry may grow by three times in the next eight years and aim to make it a $300 billion industry by 2030 from $100 billion at present.
Besides, the price of cotton – a key raw material for textile companies – has come down nearly 50 per cent from its all-time high, according to Zee Business research and they estimate the cotton prices may remain in the range of Rs 45,000 to Rs 50,000 per candy level.
Moreover, the Free Trade Agreement (FTA) with Australia and the United Arab Emirates may give a boost to the industry. Similarly, FTA negotiations with the United Kingdom and European Union, once sealed, may also aid the sector to grow further.
According to Zee Business research, FTAs with various countries will enable Indian textile exporters to compete with neighbours such as Pakistan and Bangladesh.
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