Explained: Why are textile stocks making big gains on Wednesday?

Textile stocks rallied on Wednesday after brokerages Motilal Oswal and Emkay Global turned bullish on India's textile export sector, citing the UK FTA, a proposed EU FTA, and improving global demand. Motilal Oswal estimates India's textile and apparel exports could rise from about 194 billion dollars to 350 billion dollars over the medium term. Top picks include Indo Count Industries (around 39 percent upside) and Gokaldas Exports (nearly 36 percent upside), with Buy ratings also on Arvind, Pearl Global Industries, and Welspun Living.