Textile stocks Arvind, KPR Mill and others soar up to 10% as FM announces 5-year cotton mission | Stock Market News
Union Budget 2025: Indian textile stocks surged in today’s trade, February 01, after Union Finance Minister Nirmala Sitharaman in her budget speech announced a 5 year mission focused on improving the production of cotton.
Against this backdrop, shares of Ambika Cotton Mills surged by 10% in intraday trading today, reaching ₹1,674. Other textile stocks, including KPR Mills, Vardhman Textiles, Welspun Living, S.P. Apparels, Nitin Spinners, Arvind, and Himatsingka Seide, also experienced rally ranging from 3% to 5%.
T Manish, Research Analyst, SAMCO Securities, “The five-year mission for cotton productivity aims to enhance the quality of Extra Long Staple (ELS) cotton varieties, fostering improved yields and sectoral growth. Despite stagnant to declining cotton seed prices, this initiative has the potential to strengthen the industry’s outlook and benefit companies like Ambika Cotton.”
Naveen Malpani, Partner and Consumer Industry Leader, Grant Thornton Bharat, “The government’s five-year mission to enhance cotton productivity with high-quality, long-staple varieties is a game-changer for India’s textile industry. As the world’s second-largest cotton producer, India’s textile and apparel exports stood at USD 35.87 billion in FY24, accounting for 8% of total merchandise exports.
“However, India continues to import cotton to bridge the demand-supply gap, affecting cost competitiveness. By boosting domestic productivity, this initiative will stabilize raw material availability, reduce import dependence, and enhance the global competitiveness of India’s textile sector, where 80% of capacity is driven by MSMEs,” added Naveen Malpani.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
