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Why Textile Stocks Are Falling

Feb 10, 2026

Why Textile Stocks Are FallingImage source: selamiozalp/www.istockphoto.com

Textile stocks saw a strong momentum last week after the announcement of trade deal between India and US.

Stocks such as KPR Mills, Vardhman Textiles etc were up almost 5-15%.

So, what lead to Sharp correction today?

Trade Deal Between the US and Bangladesh

The US White House released a notification on the US-Bangladesh trade agreement.

A key provision allows the US to reduce tariffs on Bangladeshi goods to 19%. In addition, a special mechanism enables select textile and apparel products to enter the US market at zero reciprocal tariff rates.

The zero-tariff benefit will be linked to Bangladesh's imports of US-origin textile inputs such as cotton and man-made fibres.

This move strengthens Bangladesh's position as a major global apparel sourcing hub.Following the notification on 10 February 2026, Indian textile stocks saw a sharp correction.

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