Know why Arvind's stocks are on a two month high

Arvind Ltd traded near 2-month highs after its unit tied up with US-based youth clothing chain Aeropostale to launch the latter's products in India.

Aeropostale specialises in making hoodies, T-shirts and jeans for young consumers below 25 years of age, a segment of the population that is exploding in numbers and showing rising discretionary expenditure in India. Aeropostale, popularly known as Aero, will be opening 30 stores and 25 shopin-shops over the next 3 years. It will also sell its products over the Internet in India.

Arvind Lifestyle, which has licensing arrangements with other global brands such as GAP, will also make Aero products locally to save on customs duties and also improve its margins at the same time.

Arvind added 1.9 percent to 272.40 rupees on the Bombay Stock Exchange. The stock has surged 22 percent over the last two weeks and it recently traded above its 200-day moving average, showing signs of bullishness.

(Image credit: Indiatimes)