Textile sector in focus now! Know what is driving it, which stocks to focus on now?

Three big news has come for the Indian textile industries. Zee Business Senior Research Analyst Varun Dubey brings a detailed report on what the big news are and why is there action in textile stocks based on these developments. Also know which companies' investors should focus on?

Dubey said the first news is that the government has removed the import duty on cotton. He further said the removal of import duty has a big meaning on its own. Indian cotton companies have been consistently importing and exporting for a few days, he said and this was due to the fact that Indian businesses were benefiting from global China plus one approach. 

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However, Indian industries that produce finished items were experiencing difficulties as a result of the continued exports. Cotton prices have been steadily rising. As a result, the government has reduced the import duty on cotton, which is in effect till September 30.

Senior Research Analyst said the second big news is that the Telangana government has set a target of increasing 55-65% of the area for cotton production. 

About 14% of the production of cotton in the country comes from Telangana. So if the area for cotton cultivation in Telangana will increase, then the supply of cotton will increase in the country as well. 

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टेक्सटाइल सेक्टर के लिए क्या है बड़ी खबर?

क्यों टेक्सटाइल शेयरों में है एक्शन?

किन कंपनियों पर रखें फोकस?

जानिए वरुण दुबे से @VarunDubey85 | @vijaychopra7 | #Textile pic.twitter.com/cLekm2YlEx

— Zee Business (@ZeeBusiness) April 18, 2022

And if this happens, then the price of raw materials will be greatly reduced and the benefit will go to those associates who use cotton as a raw material. Examples - Arvind Fashion, Aditya Birla Fashion, Monte Carlo, Dollar Industries.
The Ministry of Textiles has picked roughly 61 companies under the PLI program, with CAPEX of around Rs 19,700 crores expected in the textile sector, analyst Dubey's third big news. This will be extremely beneficial to the textile industry, he said. Along with this, employment will also increase as the textile industry is a major employment generator. As a result, this news is also quite significant in terms of the economy.

Expert Advice

Expert Vijay Chopra recommended investing in Bannari Amman Spinning Mills Ltd, Arvind Fashion, Rupa, and Amar Jyoti textile. He added Rupa is already included in his portfolio. He also said these companies will get the benefit from the PLI scheme.