The Hindu Business Line : Textile companies rule firm

Amongst the major gainers were counters such as Vardhman Spinning, Alok Industries, Arvind Mills, and Nahar Spinning. Mr Chirag Shah of SSKI said that apart from the bright prospects for the textile industry post year 2005, the fact that cotton futures have come off its high in the US markets had provided a shot in the arm for these counters.

Analyst maintain that as a result of the quota restrictions, India's market share in the world textile market is small, despite it being one of the most efficient producer of cost effective garments in the world.

Reiterating this Mr Shah is of the view that global textile market is set for an explosive growth after the WTO-mandate dismantling of trade barriers and quota restrictions in January 2005.

"This throws open a huge opportunity for India and China which are one of the world's most cost competitive textile manufacturers. In fact global textile trade is expected to triple to $856 billion over the next decade. Companies that stand to gain include Vardhman Spinning, Alok Industries and Welspun India," he added.

Market sources maintain that low cotton futures or not investor interest in textile stocks will be sustained.

The stock of Arvind Mills ended at Rs 61.90, up 5.99 per cent on the BSE while Alok Industries ended at Rs 60.05, up 3.27 per cent.

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