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Our Bureau

Mumbai , April 7

BOLSTERED by the heavy response to the initial public offerings of Gokaldas Exports, textile companies' shares shot into the limelight on Thursday in anticipation of market interest in the sector.

Most textile companies especially the mid-cap segment witnessed increased activity along with rise in the stock price.

Among the major gainers in today's trading included Malwa Cotton (up 10 per cent at Rs 77.25 on the BSE), Vardhman Spinning and Weaving Mills (up 9.19 per cent at Rs 330.25), Nahar Spinning (up 8.52 per cent at Rs 226.05), K G Denim (up 5.83 per cent at Rs 44.50), Mahavir Spinning and Weaving Mills (up 5 per cent at Rs 312.30) and Rajasthan Spinning (up 4.83 per cent at Rs 89.05).

Brokers said the spurt in textile sector came due to the very good response to the IPO of Gokaldas Exports, which was oversubscribed almost 43 times.

"Huge interest in the IPO shows there is appetite for textile stocks from the market players and since most of them did not do well in the last few months buying was seen in the stocks of this sector," said a dealer with a domestic broking firm.

He said the removal of quota system for exports is also seen as positive and the initial impact of this could be seen in the January-March quarter results.

"Even though the impact would not be much but the market players are hoping of some improvement in the performance of textile companies," he added.

Another reason for interest is the fall in cotton prices and this is seen as positive for textile companies.

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