Welspun Living, Rajesh Exports, Avanti Feeds: Export stocks slide as the US imposes 25% tariff, penalty on India

Shares of companies that earn a sizeable chunk of revenue by exporting products to the United States (US) were trading sharply lower on Thursday, July 31, 2025, a day after US President Donald Trump announced a 25% tariff on all Indian imports starting August 1, coupled with an unspecified penalty over Russian oil and defence purchases.

The United States continues to be India’s top export destination, accounting for 18% of total outbound shipments in 2024. However, fresh tariff hikes by the US are set to disrupt several key sectors—particularly pharmaceuticals, gems & jewellery, electronics, and refined petroleum.

Shares of textile makers with exposure to the US, like Vardhman Textiles, fell 4.23%; Alok Industries declined 3%; Arvind dropped nearly 4%; Welspun Living fell 6%; Trident declined 2.5%; Vedant Fashions declined 1.93%; Gokaldas Exports tumbled 7%; Pearl Global Industries dropped 7%; and KPR Mills fell nearly 4%.

Shares of Avanti Feeds and Apex Frozen Foods, which earn more than 50% of revenue from North America, were also facing selling pressure, with both the stocks down 4% and 2.4%, respectively.

According to a report by CNBC TV18, Indian marine exports are currently at ₹60,000 crore, of which shrimp exports account for ₹50,000 crore.

Indian jewellery exporters were also trading lower. According to government trade data, India exported gems and jewellery worth $9.9 billion to the US in 2024, making up 12.8% of total Indian exports to the US. The sector had enjoyed relatively open access to the American market, with many product categories—like cut and polished diamonds and gold/silver jewellery—previously entering duty-free or at preferential rates.

Following the tariff announcement, shares of leading jewellery companies slumped on Thursday as investors braced for the impact of higher duties on overseas sales.

Titan, Kalyan Jewellers, Rajesh Exports, TBZ, Goldiam International, and Thangamayil Jeweller fell between 1 and 5%.

Pharma shares were also trading with a negative bias, with the NIFTY Pharma index declining over 1%. Indian pharma companies exported medicines worth $8.1 billion in 2024.

Shares of Dr. Reddy’s Labs, Sun Pharma, Lupin, Glenmark, Ipca Labs, Granules India, and Biocon fell between 1.5% and 3%.

Meanwhile, Trump on Thursday announced a new energy cooperation deal with Pakistan, wherein the two countries will work together to develop Islamabad’s oil reserves.

In a post on Truth Social, Trump said the United States had "just concluded a deal with the country of Pakistan, whereby Pakistan and the United States will work together on developing their massive oil reserves."

Trump said that discussions were underway to select the American oil company that would lead the partnership, adding that "maybe they’ll be selling oil to India some day."