Indian suppliers of T-shirts, bed linen and towels to global retailers such as Walmart Inc. are among this year’s biggest stock-market winners, with some investors betting the rally has further to run.
A Bloomberg-compiled equal-weight gauge of eight textile exporters has climbed more than 30% this year, compared with an 8% decline in benchmark NSE Nifty 50 Index, with the nation’s new trade deals and a friendlier tariff regime bolstering the industry’s competitiveness.
The sector “should see a re-rating as this is a real opportunity for Indian firms to grab market share,” said Pawan Bharaddia, co-founder and chief investment officer of Equitree Capital Advisors Pvt. SP Apparels Ltd., a supplier of garments to Tesco Plc, is a part of his portfolio. The stock has surged 60% this year.
India is set to implement its trade accord with the UK this month, is concluding one with the European Union, and is moving closer to a deal with the US, fueling optimism that these agreements will boost exports. At the same time, global brands are moving their sourcing away from China and a few Asian peers, creating opportunities for Indian exporters and manufacturers.
