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.

Avanti Feeds Limited , a leading player in the aquaculture industry, has reported robust financial results for the second quarter of fiscal year 2026, demonstrating resilience in the face of ongoing tariff pressures from the United States.

Financial Highlights

The company posted a consolidated gross income of INR 1,659.00 crores in Q2 FY26, with a profit before tax (PBT) of INR 227.00 crores. Notably, the shrimp processing division showed remarkable growth, with revenues surging by 62% year-over-year to INR 462.00 crores, despite the challenges posed by U.S. tariffs.

Shrimp Processing Division Performance

The shrimp processing division's strong performance was attributed to:

• Increased sales volume, up by 1,439 metric tons compared to Q2 FY25
• Higher average selling price realization
• Favorable foreign exchange rates
• Marginal decrease in ocean freight rates

The division's profit before tax stood at INR 53.00 crores, more than doubling from INR 23.00 crores in the corresponding quarter of the previous year.

Feed Division Outlook

While the feed division continues to perform well, the company expects some pressure on margins in the coming quarters due to rising raw material costs. Key raw material price trends include:

• Fish meal prices increasing to INR 125.00 per kg
• Soybean meal prices rising to INR 47.00 per kg
• Wheat flour prices ranging between INR 32.50 to INR 33.00 per kg

Despite these challenges, Avanti Feeds maintains its feed sales guidance of 575,000 MT for FY26, indicating confidence in sustained demand.

Market Diversification and Government Support

To mitigate the impact of U.S. tariffs, Avanti Feeds is actively pursuing market diversification strategies. The company is exploring new geographies and focusing on value-added products to enhance competitiveness and improve margins.

The Indian government has recently announced an export promotion scheme with a total outlay of INR 25,000.00 crores over five years. This initiative aims to support exporters affected by reciprocal tariffs and is expected to benefit sectors including marine products.

Outlook

Despite the challenges posed by U.S. tariffs, Avanti Feeds remains optimistic about the future. The company cites several factors supporting the industry's stability:

1. Market diversification efforts
2. Consistent global demand for shrimp
3. Shift towards value-added products
4. Government support for domestic market development

The management expects demand for shrimp to continue growing, supported by its position as a versatile, affordable, and widely accepted protein source.

As Avanti Feeds navigates through these dynamic market conditions, its strong performance in Q2 FY26 demonstrates the company's resilience and ability to adapt to changing global trade landscapes.