Tariff Ruling Sparks Divergence In Textile Shares: Kitex Up 11%, Gokaldas Down 3%

On Monday, stocks in the textile industry gave mixed signals as there was renewed uncertainty about world tariffs. Gokaldas Exports' share price fell 3% to hit an intraday low of ₹766.25 on the NSE, while Indo Count and K.P.R. Mill slipped up to 1.3% in early trade.

In contrast, Kitex Garments' share price jumped 11% to ₹206, and Welspun Living and Pearl Global share prices gained up to 4% intraday. The volatility was a result of a sequence of events concerning the US trade policy.

What Triggered The Market Reaction?

The US Supreme Court ruled on Friday that President Donald Trump had overstepped his authority in imposing certain tariffs, calling them illegal. However, clarity on how global trade deals will change remains limited.

Soon after the ruling, Trump announced a 10% global tariff, only to raise it to 15% the next day. According to a White House fact sheet, the revised levy will take effect at 12:01 a.m. ET on 24 February 2026.

Trump invoked Section 122 of the Trade Act of 1974, which allows the US president to impose tariffs of up to 15% for up to 150 days to address serious balance-of-payments issues. This authority does not require a prior investigation, though any extension beyond 150 days would need congressional approval.

Trump also stated that national security tariffs under Section 232 and existing Section 301 tariffs remain in force.

What Is The Status Of India–US Trade And Its Impact?

India and the United States have postponed a crucial meeting between their chief trade negotiators. The meeting was expected to finalise the legal framework of the proposed interim bilateral trade agreement.

The Indian delegation, headed by chief negotiator Darpan Jain, was slated to visit Washington for talks with US Trade Representative Jamieson Greer.

The Indian government has stated that it is currently assessing the implications of the US Supreme Court’s ruling on tariffs.

Following the move, India’s benchmark indices rose on Monday after the Supreme Court ruling. The Sensex rose more than 600 points to an intraday high of 83,462, while the Nifty climbed over 150 points to trade above 25,750.

Also Read - Donald Trump’s 15% Global Tariff

What Does This Mean For Investors?

To investors, the trend in textile stocks underscores increasing volatility in the policies. Exporters who have a large presence in the US market and who are sensitive to additional announcements of tariffs and trade negotiations may continue to be affected by these matters.

Although the overall Indian market had responded favourably to the decision of the US Supreme Court, the sentiment may remain lopsided in the short-term as a result of uncertainty that surrounds the new 10-15% global tariff, as well as the postponed India-US trade talks.

The important monitorables are transparency in the implementation of tariffs, the interim trade agreement progress, and interim trade relief on specific sectors. Policy developments should be closely monitored by investors until the visibility is enhanced.

Any easing or escalation in trade measures could materially influence sector sentiment and earnings visibility. Hence, they must adopt a cautious, selective approach from investors.

Sources:

Economic Times

Money Control