Shares of major textile companies, including Welspun Living Ltd., Gokaldas Exports Ltd., Vardhman Textiles Ltd., Pearl Global Ltd., and Trident Ltd., surged up to 9% on Wednesday, 10 September, as optimism grew over a possible trade deal between India and the US following the recent deadlock.

Welspun Living shares jumped over 9%, while Gokaldas Exports and Trident gained more than 7% each. Shares of Pearl Global and Vardhman Textiles also advanced 5–6%.

Hopes for progress strengthened after US President Donald Trump posted on Truth Social that both countries were continuing trade talks and that he looked forward to speaking with his “good friend,” Prime Minister Narendra Modi. PM Modi responded on X, calling India and the US “close and natural friends” and expressing similar optimism about upcoming discussions.

The trade impasse began after the Trump administration imposed an additional 25% tariff on Indian exports for buying Russian oil, pushing total tariffs to 50%. Data from GTRI showed that over 66% of India’s exports were likely to be impacted, mainly textiles, seafood, and gems & jewellery.

Since most textile firms derive 50–70% of their revenue from the US market, the burden of tariffs has been heavy. Pearl Global’s management earlier said that US buyers were demanding 15–20% discounts to offset higher costs. The company also warned that if tariffs persisted, they could force a $6 billion shift in exports and threaten lakhs of jobs.

Over the last month, most textile stocks had corrected 15–20% before Wednesday’s rebound.

At 11:29 am, the shares of Gokaldas Exports were trading 6.36% higher, shares of Welspun Living were trading 8.53% higher, shares of Pearl Global were trading 9.35%, and shares of Trident Ltd were trading 4.38% higher on NSE.