Shares of textile and apparel firms continued their impressive outlook on the stock market. Vardhman Textiles and Sangam India hit their fresh 52-week highs, while other textile firms Welspun India and Alok Industries also touched their respective 52-week record highs on the Bombay Stock Exchange (BSE) in Monday’s intra-day session.
In the past month, the shares of Vardhman Textiles, Trident India and Alok Industries have been on a rise between 20 per cent and 25 per cent as compared to the S&P BSE Sensex was up by 2 per cent during the same period.
In the Union Budget 2020-21, the central government also gave a new lease of life to the ailing sector by announcing the setting up of a mega textile park, incentivise production, rationalising the custom duty rates on imports of key raw material items and allowing the 100 per cent Foreign Direct Investment in the textile sector.
The government’s recent decision on deferment of GST hike in the tax rate on textiles from 5 per cent to 12 per cent also supports the sector. Among the components of textile Stocks that were trading with gains and hit their fresh 52-week highs, Sangam India (up by 63 points trading at Rs 414 per share) and Vardhman Textiles India (up by 156.50 points trading at Rs 2479.70 per share).