Export Stocks Rise Up to 8% on Trump’s India-U.S. Trade Deal Comment

Avanti Feeds' stock price rose by approximately 8 %, as did stocks of a number of other shrimp and textile companies on January 22. Stocks rose after U.S. President Donald Trump expressed respect for PM Modi and confidence in reaching an agreement regarding good trade relations.

Trump's statement followed his WEF (WEF is the "World Economic Forum") speech, as a result of the renewed optimism around EEA (Export Oriented Companies), which is that they are dependent on the U.S. market.

The hope that there will be an agreement regarding tariffs has created a "V" recovery in trade.

Shrimp Stocks Lead the Rally

Avanti Feeds' North American sales accounted for 65.4 % of total revenues for the first quarter, while Apex Frozen Foods reported that 53 % of their revenue was generated from U.S. exports.

Apex Frozen's stock price increased by more than 5 % (to ₹277.70), and Coastal Corporation's stock rose by approximately 5 %.

Heavy Exposure to the U.S. and news of the trade negotiations positively impacted shrimp stock prices.

Textile Shares Join Upward Move

Gokaldas Exports and Raymond Lifestyle had both seen a stock price increase of more than 5 % each. Pearl Global Industries was up by more than 2 %.

As these companies relied heavily on the U.S., positive bilateral talks generated optimism regarding future growth.

Trade Deal Eases Tariff Fears

The Trump administration earlier hiked Indian import tariffs to 50 % over Russian oil purchases. Export stocks plunged then.

The comments made by President Trump at Davos indicate that relations between the U.S. and India are improving, and businesses relying heavily on the U.S. will benefit from an increase in expectations regarding the U.S.-India trade agreement.

The shrimp and textile industries in India are recovering as the trade barriers have decreased. Investors are tracking when the agreement will be reached so they can enjoy sustained growth in value.