Capex boom, global sourcing tailwinds fuel textile stock rally

Indian textile stocks rallied sharply, with Pearl Global jumping 11.2 percent and Indo Count Industries surging 9.5 percent, followed by Arvind at 6.3 percent, Welspun Living at 5 percent, and Gokaldas Exports at 3.7 percent. Motilal Oswal noted that the sector is entering a strong capex cycle focused on higher-margin segments like garments, MMF, specialty fabrics, and advanced textiles, unlike earlier commodity-focused expansions. The current investment push also includes automation, sustainability, and premiumisation initiatives aimed at capturing global sourcing opportunities.