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Cotton Stocks Rally: Ambika Cotton, KPR Mills, Arvind and More Surge After Cotton Mission Announcement in Budget 2025

Written by: Kusum KumariUpdated on: Feb 3, 2025, 5:32 PM IST
Shares of Ambika Cotton, KPR Mills, Arvind, and Vardhman rallied after Budget 2025's cotton mission, boosting textile stocks by up to 9%.
Cotton Stocks Rally: Ambika Cotton, KPR Mills, Arvind and More Surge After Cotton Mission Announcement in Budget 2025
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Shares of textile companies surged by up to 9% during the special Budget session on Saturday following Finance Minister Nirmala Sitharaman’s announcement of a 5-year mission aimed at boosting cotton productivity.

Ambika Cotton Leads the Rally 

Ambika Cotton Mills shares saw the biggest jump, rising 9% to ₹1,630. Other textile stocks followed suit, with KPR Mills shares up nearly 4%, while Vardhman Textiles and Arvind saw gains of 2% and 4%, respectively.

Focus on Cotton Productivity and Farmer Support 

The government’s new initiative is set to rejuvenate India’s traditional textile industry. Finance Minister Nirmala Sitharaman highlighted the focus on promoting extra-long staple (ELS) cotton varieties, which is expected to provide strong support for the sector. Experts believe this move will positively impact textile companies, including yarn and garment manufacturers.

In her Budget speech, Sitharaman also introduced modifications to the Kisan Credit Card (KCC) scheme. The loan limit under the interest subvention scheme will increase from ₹3 lakh to ₹5 lakh, providing short-term loans to 7.7 crore farmers.

Budget Focus on Economic Growth

The Finance Minister also emphasised that the budget aims to boost household sentiment, increase disposable income, and encourage private investment to drive economic growth. She identified four key pillars for India’s future: agriculture, MSMEs (Micro, Small, and Medium Enterprises), investments, and exports.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Feb 1, 2025, 12:17 PM IST

Kusum Kumari

Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.

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