Textile stocks including Vardhman Textile Ltd., Welspun Living Ltd., Gokaldas Exports Ltd. surged on Tuesday following a Gazette notification on removal of 11% duty on raw cotton.
Shares of Vardhman Textile rose as much as 9.38% to Rs 447.80 apiece, closely followed by Welspun Living shares which spiked 6.40% intraday to trade at Rs 124.6 apiece.
Gokaldas Exports Ltd. share price rose 3.57% at day’s high to trade at Rs 752 apiece. Arvind Ltd. rose as much as 2.95% to Rs 301.90 apiece.
The notice said that the 11% duty on raw cotton imports will be removed for a period of 42 days till September 30.
This exemption is understood to benefit the textile chain including yarn, fabric, garments and made-ups and is also likely to provide temporary relief to the textile industry.
In the Gazette notification the government said the move was “necessary”, “in public interest”, which is seen as a response to the recent tariffs announced by the US.
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