Kitex rises on US trade talks, King Infra gains on EU seafood export nod; Kerala stocks on the up

The European Union's (EU) decision to approve 102 new Indian fishery establishments for exports to its member countries has come as a boost for India’s seafood sector. Among the beneficiaries was Kerala-based King Infra Ventures, whose stock surged 8.44 per cent to ₹174 on Wednesday following the announcement.

The EU’s move comes as a blow for US President Donald Trump, who urged the bloc to impose a 100 per cent tariff on Indian goods as a punitive measure for the country's continued import of Russian oil.

However, Trump later softened his stance and initiated negotiations to draft a trade deal, following his earlier imposition of a 50 per cent punitive tariff on New Delhi. Trump said he would be speaking with Prime Minister Narendra Modi and expressed hope of reaching a resolution to the ongoing tensions between the two nations.

Driven by expectations of a trade deal, the Sensex and Nifty traded higher on Wednesday. The Nifty rose 104 points to close at 24,973, while the Sensex surged 323 points to end the day at 81,425.

Kitex Garments, which was among the hardest hit by the 50 per cent punitive tariffs imposed earlier, rebounded 4.72 per cent to close at ₹195.63. The company, which exports more than 95 per cent of its products to the US, is banking on renewed optimism sparked by the ongoing trade talks.

EU move a boost for India's seafood industry
With the approval of 102 additional companies to export seafood, the total number of Indian establishments eligible to export to the EU has risen to 604. The EU is India’s second-largest destination for seafood exports.

In 2023–24, India’s seafood exports to the EU stood at $1.1 billion, according to government data. The new approvals are expected to boost exports by up to 20 per cent.

The United States remained India’s largest seafood export destination in 2023–24, accounting for $2.54 billion in exports. However, the imposition of US tariffs delivered a significant blow to the industry.

The latest approval by the European Union was the result of a joint effort by the Union Commerce Ministry and seafood export associations. "This significant expansion reflects the growing confidence in India's food safety and quality assurance systems and marks a major step forward in enhancing market access for Indian seafood products specially aquaculture shrimps and Cephalopods (Squid, Cuttle fish and Octopus," the Ministry of Commerce and Industry said in a statement. 

India's total seafood exports in 2023-24 was $7.38 billion. Of this, shrimp accounted for 66 per cent of the total exports, valuing around $4.88 billion. 

Optimism drives Kerala companies up
Kerala-based companies rose on Wednesday following positive signals from trade negotiations with the US and other supportive developments.

Tolins Tyres saw the biggest jump of the day, with the stock surging 14 per cent to ₹175.57. Solve Plastics also gained, rising 4.8 per cent to ₹30.35.

Among financial firms, Federal Bank closed 2.32 per cent higher at ₹196, CSB Bank rose 1.85 per cent to ₹368, and South Indian Bank gained 0.7 per cent to ₹28.83.

However, Muthoot Finance fell 1.51 per cent to ₹2,898.1, and Manappuram Finance also closed 1.51 per cent lower at ₹288, on a day when gold prices breached the ₹81,000 mark per sovereign in Kerala. 

Among other notable stocks, FACT edged down by 0.02 per cent to ₹968.85, while Cochin Shipyard gained 0.85 per cent ₹1,643 and KSE Ltd closed 1.1 per cent higher at ₹2,659.35.