Export-oriented stocks experienced a strong rally on January 22, with shrimp and textile companies leading the gains following US President Trump's optimistic comments about a potential India-US trade deal in an exclusive interview with Moneycontrol.

Trump's Positive Trade Deal Comments

Trump expressed high regard for Prime Minister Modi during the interview, describing him as a close friend and indicating positive prospects for bilateral trade relations. "I have great respect for your Prime Minister. He's a fantastic man and a friend of mine. We are going to have a good deal," Trump stated in his comments to Moneycontrol.

Market Rally Details

The positive sentiment translated into significant stock price movements across export-oriented sectors:

Background Context

These export-oriented companies had previously faced significant pressure after the Trump administration increased tariffs on Indian imports to 50%. The tariff hike was implemented citing New Delhi's continued purchase of Russian oil, which had negatively impacted companies deriving substantial revenue from the American market.

Sector Impact

Shrimp and textile stocks were particularly responsive to the trade deal optimism, as these sectors have significant exposure to US markets. The rally represents a recovery from earlier declines caused by the heightened tariff environment, with investors now anticipating improved trade relations between the two countries.

The market response demonstrates the sensitivity of export-oriented stocks to US-India trade developments, particularly for companies with substantial American market exposure.

Source: https://www.moneycontrol.com/news/business/markets/avanti-feeds-other-export-oriented-shares-rise-up-to-5-on-trump-s-trade-deal-comment-to-moneycontrol-13785196.html

Export-oriented stocks witnessed a strong recovery on January 12, with companies like Avanti Feeds , Gokaldas Exports, and Apex Frozen Foods trading at their day's high following positive comments from US Ambassador to India Sergio Gor regarding bilateral trade negotiations.

The rally provided much-needed relief to investors after these stocks had declined sharply the previous week due to concerns over potential trade disruptions. The decline was triggered by US President Donald Trump's threat of imposing 500% tariffs on countries that continue business engagement with Russia, including India.

US Ambassador's Encouraging Statements

US Ambassador Sergio Gor, who assumed charge in New Delhi on Monday, made several positive remarks that boosted market sentiment. He emphasized that both countries continue to engage actively and confirmed that the next call on the much-awaited trade deal would take place the following day.

Gor highlighted the genuine relationship between Trump and Prime Minister Narendra Modi, stating that "real friends can disagree, but resolve the difference." He framed current trade negotiations as part of a broader, resilient partnership between the two nations.

Stock Performance Recovery

Several export-focused companies showed strong intraday gains, recovering from their day's lows:

Aquaculture and Food Processing

Textile Sector

Textile companies, many of which have significant exposure to US markets, also participated in the recovery:

Market Context and US Revenue Exposure

The recovery was particularly significant for companies with substantial US revenue exposure. Gokaldas Exports, for instance, derives more than 60% of its overall revenue from the US market. The company's shares had fallen more than 34% in 2025 amid concerns over Trump's tariff policies, making Monday's recovery especially notable for investors.

The positive market response reflects investor optimism about the potential resolution of trade tensions and the continuation of strong bilateral economic ties between India and the United States. The ambassador's comments suggesting ongoing diplomatic engagement and scheduled trade discussions provided reassurance to market participants who had been concerned about the impact of potential tariff measures on export-oriented businesses.