Alok Industries, Arvind, Deepak Spinners, Trident gain on PLI for textiles sector, analysts expect the rally to continue
- Shares of textile companies gained as investors cheered the government’s approval for the production linked incentive scheme (PLI) for textile.
- The scheme is reportedly expected to provide employment to 7.5 lakh people.
- Analysts believe some quality textile stocks will continue to rise for a few more trading sessions.
AdvertisementA few textile company stocks gained on Wednesday as investors cheered the government’s approval for the production linked incentive scheme (PLI) for the textile industry in India.
Under the scheme, incentives worth ₹10,683 crore will be provided over five years to the sector. The move is positive for the sector and the economy as it will help bolster domestic manufacturing, boost employment and scape up exports. The scheme is reportedly expected to provide employment to 7.5 lakh people.
PLI scheme typically provides incentives to companies for enhancing their domestic manufacturing apart from focusing on reducing import bills and improving the cost competitiveness of local goods.
The news led to a rise in shares of the textile companies like Alok Industries, Arvind, Deepak Spinners and others.
|Textile companies||Share gain|
|Siyaram Silk Mills||2.46%|
Analysts believe some quality textile stocks will continue to rise for a few more trading sessions.
Saurabh Jain of SMC Global Securities reportedly said, “As the cabinet approval for PLI scheme to the textile sector has been announced, some quality textile stocks are expected to extend this rally in upcoming trade sessions as well.”
The Indian textiles and apparel industry is one of the largest in the world and is also a key contributor to India’s export, as it contributes 12% to export earnings and 2% to the GDP, according to Indian Brand Equity Foundation, a government’s export promotion agency.
Meanwhile, some of the textile company stocks have been rising in the last five trading sessions in anticipation of the PLI scheme and hence did not react today.
|Textiles companies||% returns in 5 days|
|Indo Count Industries||13.42%|
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