Vardhman Textiles, Welspun Living and other textile shares rally on temporary scrapping of cotton import duty

Following the government's move, shares of Vardhman Textiles rose as much as 9.33% to hit an intraday high of ₹447.50. Arvind Ltd shares advanced 2%, Raymond Lifestyle gained 7%, Gokaldas Exports climbed 2.5%, Indo Count Industries gained 3.65%, Alok Industries rose 2.11% and Kitex Garments rose 5%.

The Finance Ministry on Monday scrapped the 11% duty on imports of raw cotton for a period of 42 days.

Through a notification by the Central Board of Indirect Taxes and Customs, the government removed the basic customs duty and the Agriculture Infrastructure and Development Cess (AIDC) on cotton imports from August 19 to September 30, Business Standard reported.

Indian textile companies earn a significant amount of revenue from the United States, and in the event of recent tariffs announced by President Donald Trump, shares of Indian textile makers came under selling pressure.

Meanwhile, reports suggest that Trump has indicated that the US may not impose secondary tariffs on countries continuing to procure Russian crude oil.

There were apprehensions that additional secondary tariffs would have hit India in case the US decided to enforce them.

"Well, he (Russian President Vladimir Putin) lost an oil client, so to speak, which is India, which was doing about 40 per cent of the oil. China, as you know, is doing a lot… And if I did what's called a secondary sanction, or a secondary tariff, it would be very devastating from their standpoint. If I have to do it, I'll do it. Maybe I won't have to do it,” Trump said on Friday.

The US president made the remarks in an interview with Fox News aboard Air Force One en route to Alaska for a high-stakes summit meeting with Putin. The meeting concluded without any agreement on ending the Russia-Ukraine war.