By Admin 
India EU Free Trade Agreement: The effect of the free trade agreement between India and the European Union is being seen in the stock market. After this historic agreement, there was a tremendous stir in the market on Tuesday, January 27, especially in export related companies. Shares of many textile exporting companies have registered a rise of up to 12 percent.
The completion of this long pending deal has increased confidence among investors and some selected stocks are directly benefiting from it. Besides, it is also expected to benefit the Indian gems and jewelery business. Let us know, which stocks gained momentum and how can the jewelery sector benefit?
Jewelery sector will get big benefit in exports
Indian gems and jewelery are in demand all over the world. However, there was a lot of disappointment among exporters after the US government’s decision of 50 percent tariff. Businessmen were also facing huge losses. After this deal of India with the European Union, the Indian gems and jewelery sector will get a new opportunity to expand in the European market. The 10 percent tariff on gems and jewelery will be reduced to zero.
Labour-intensive industries are expected to benefit the most once this agreement is implemented. Tariffs of up to 10 percent on exports worth about $33 billion from sectors like textiles, readymade garments, leather, footwear, marine products, handicrafts, engineering goods and automobiles will be abolished. This will further strengthen the competitiveness of these areas in the global market.
There was a rise in these shares
On Tuesday, there was a rise in the shares of some textile and food related companies in the stock market. Shares of Gokaldas Exports had risen by more than 5 percent to reach Rs 585 on BSE. At the same time, buying was also seen in the shares of KPR Mill and its price increased by about 3 percent.
Apart from this, shares of Welspun Living registered a rise of 3.5 percent. After which the stock reached an intra-day high of Rs 125.25. Shares of Vardhaman Textile jumped 5 percent to Rs 422. Whereas Trident shares were registering a rise of 4 percent. The shares made an intra-day high of Rs 26.42 during the trading day.
Talking about food sector, shares of Avanti Feeds also witnessed a rise of about 3 percent. At the same time, the shares of Apex Frozen Foods had the biggest rise and its price increased by 12 percent.
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