The Indian textile sector experienced declines in several stocks on February 10, 2026, as markets reacted to a recent US-Bangladesh trade agreement announced on February 9, 2026.
US-Bangladesh Trade Agreement Details
The United States and Bangladesh signed a trade deal that reduces the US reciprocal tariff on Bangladeshi goods from 20% to 19%. It also establishes a mechanism for zero tariffs on certain textiles and apparel exports from Bangladesh that use US-produced materials, such as cotton and man-made fibers. The volume of exempted goods is tied to US textile exports to Bangladesh. In exchange, Bangladesh provides greater market access for various US products, including industrial and agricultural goods.
This agreement aims to support Bangladesh’s apparel industry, which accounts for a major portion of its exports and competes globally, including with India in the US market.
Impact on Indian Textile Stocks
Indian textile companies, many of which export to the US, saw mixed to negative price movements early on February 10, 2026 (as of around 9:27 AM IST). Stocks showing declines included:
- Arvind: BSE 378.50 (-2.36%)
- Indo Count: 300.85 (-2.29%)
- KPR Mill: 952.80 (-2.80%)
- Kitex Garments: 207.50 (-4.16%)
- Nitin Spinners: 346.70 (-1.99%)
- Sanathan Textiles Ltd.: 428.75 (-2.98%)
- Trident: 27.57 (-2.79%)
- Vardhman Textiles: 494.70 (-2.32%)
- Welspun Living: 140.80 (-2.96%)
Other stocks showed minor gains or flat performance, such as Page Industries (0.31%), Raymond (3.00%), and Grasim (0.32%). Broader indices like Nifty 50 (+0.68%) and Sensex (+0.20%) were positive overall.
The declines may reflect investor concerns over increased competition from Bangladesh in the US market due to the tariff reduction and exemptions for select products using US inputs. Bangladesh’s apparel sector benefits from lower effective duties on qualifying goods, potentially pressuring Indian exporters’ pricing and market share.