Quick Read
- Gokaldas Exports Ltd. shares surged 19.99% to ₹694.05 on February 3, 2026, hitting the upper circuit.
- The rally followed a new India-US trade deal reducing tariffs on Indian exports from 50% to 18%.
- Textile companies like Gokaldas derive 50-70% of revenue from the US market.
- The company’s Vice Chairman noted a strong US orderbook pipeline until Q1 FY27.
- Despite the surge, delivery volumes declined, and the stock’s Mojo Score remains subdued.
MUMBAI (Azat TV) – Shares of Gokaldas Exports Ltd. surged by 19.99% to hit the upper circuit at ₹694.05 on February 3, 2026, driven by a new bilateral trade agreement between India and the United States. This landmark deal significantly reduces tariffs on Indian exports to the US from a previous 50% to 18%, providing a substantial boost to export-oriented textile companies like Gokaldas, which derive a significant portion of their revenue from the American market.
The rally signals a positive shift in investor sentiment, as the agreement removes a major overhang that had negatively impacted the textile sector for months. Previously, high tariffs had led to cautious foreign investor participation and prolonged underperformance for Indian equities, with textile exporters bearing the brunt due of their heavy dependence on the US market.
India-US Trade Deal Fuels Textile Sector Optimism
The catalytic event for the market surge was the announcement of the India-US trade deal by US President Donald Trump and Indian Prime Minister Narendra Modi. Following a telephonic conversation, President Trump posted on Truth Social, confirming the agreement to lower reciprocal tariffs from 25% to 18% at Prime Minister Modi’s request. For Indian exports, this translates to an overall tariff reduction from 50% to 18%, a move that is expected to enhance India’s competitiveness in global markets.
Prime Minister Modi reciprocated on X, expressing delight that ‘Made in India products will now have a reduced tariff of 18%,’ and thanking President Trump on behalf of India’s 1.4 billion people. The agreement also reportedly includes India’s commitment to halt Russian oil purchases and reduce its own tariff and non-tariff barriers on US goods to zero.
This new 18% tariff on Indian garment exports is notably lower than those faced by competing hubs such as Vietnam and Bangladesh, both of which face tariffs of 20%. This favorable positioning is anticipated to give Indian textile manufacturers a competitive edge, leading to increased order inflows and improved margins.
Gokaldas Exports’ Performance Amid Market Shift
On the day of the announcement, Gokaldas Exports Ltd. opened with a significant gap up, immediately hitting its maximum permissible price band. The stock maintained this price throughout the session, reflecting robust buying momentum and complete absorption of available supply, according to MarketsMojo. The company’s performance significantly outpaced the broader Garments & Apparels sector, which gained 8.68%, and the Sensex index, which saw a modest 2.41% increase.
For companies like Gokaldas Exports, the trade deal is particularly impactful. Reports indicate that Gokaldas, along with Welspun Living and Indo Count Industries, generates close to 70% of its total revenue from the US market. In an interaction with CNBC-TV18 on January 27, Gokaldas Exports’ Vice Chairman & Managing Director Sivaramakrishnan Ganapathi had already indicated a strong US orderbook pipeline extending until the first quarter of financial year 2027, with orders also coming in for the second quarter.
The previous 50% US tariff had presented significant challenges for the company. Business Today reported that Gokaldas Exports’ Q3 FY26 was the first full quarter impacted by the steep tariff, with the company managing to keep its revenue flat at ₹998 crore by offering discounts on US shipments to partially offset the high duties.
Investor Sentiment and Technical Outlook for Gokaldas Exports
Despite the strong price rally, the underlying investor sentiment for Gokaldas Exports presents a mixed picture. MarketsMojo noted a sharp 55.54% fall in delivery volumes on February 2, 2026, compared to the five-day average. This decline in actual share transfers suggests that while speculative buying was intense, genuine long-term investor commitment might be more tentative, potentially indicating a phase of consolidation or profit-taking by short-term traders.
From a technical standpoint, the stock’s last traded price of ₹694.05 is comfortably above its 5-day and 20-day moving averages, signaling short-term bullish momentum. However, it remains below its 50-day, 100-day, and 200-day moving averages, suggesting that longer-term trends have yet to fully confirm a sustained uptrend. This mixed technical outlook warrants cautious optimism among investors.
Furthermore, the company’s Mojo Score remains subdued at 36.0, and its Mojo Grade was downgraded from Hold to Sell on December 22, 2025. These ratings reflect concerns from fundamental and technical analysts regarding valuation, earnings visibility, or other risk factors, which investors are advised to weigh against the current price momentum.
The immediate surge in Gokaldas Exports’ share price clearly illustrates the profound impact of favorable trade policies on export-heavy industries. While the India-US trade deal provides a much-needed boost by alleviating tariff burdens and enhancing competitiveness, the mixed signals from delivery volumes and analyst ratings suggest that investors are balancing short-term momentum with long-term fundamental assessments and potential market volatility.