Textile scrips rise on revival in sentiment

The share price of textile companies jumped by up to 10 per cent on Thursday, on expectation of a sharp recovery in textile and apparel export in the coming months, due to less shipment from China.

The domestic market is also gradually overcoming the dull demand sentiment which had arisen out of demonetisation of high value currency notes in November 2016.

The share price of Trident jumped by 9.8 per cent to close on Thursday at ~87.90. Garden Silk and Banswara Syntex rose seven per cent and 5.6 per cent to ~33.65 and ~151.30, respectively. Garware Synthetics and Nahar Spinning rose by 4.9 and 2.6 per cent.

Trade sources believe India's share in the global textile market would rise after China’s decision to reduce energy and personnel-intensive industries, including textiles and apparel. With around 39 per cent market share, China leads in global textile export. India's share is five per cent.

“While the domestic market suffered a temporary setback, with the entire trade at a standstill following demonetisation of high value currency notes, it is gradually coming back on track. Steady business growth was witnessed in January and February, after subdued sales in November and December. With the wedding season on, we expect sales to remain up this season,” said Rahul Mehta, president, Clothing Manufacturers’ Association of India.

Industry sources said even if one per cent of China’s market is captured by Indian exporters, there would be a big boost to our overall shipment in the sector.