Why are Pearl Global shares down 6% today? Explained
Shares of Pearl Global Industries Ltd plunged 6% on Friday, August 1, closing at ₹1,398 after falling as much as ₹89.30 intraday. The stock was among the top losers on NSE, reacting sharply to the latest trade policy developments from the United States.
Indian textile and garment exporters, including Pearl Global, Gokaldas Exports, Arvind Ltd., and Welspun Living, were under pressure after the US administration under President Donald Trump announced revised tariff measures. The US has retained a 25% import tariff on Indian textile exports, while slashing the duty on Bangladeshi exports from 35% to 20%.
This tariff relief to Bangladesh, a key competitor in the global apparel trade, sparked concerns among investors over India's competitive positioning in the US market, especially in the ready-made garment (RMG) segment.
Pearl Global, which derives between 50% to 70% of its revenue from the US, is likely to face pricing pressures and market share challenges. Analysts noted that India currently holds about a 6% share of the US RMG import market, compared to Bangladesh's 9% and Vietnam's 19%.
With Vietnam also having struck a favorable trade deal with the US recently, the margin pressure for Indian exporters could mount, particularly if buyers shift sourcing preferences toward lower-tariff destinations.
Other textile stocks with significant US exposure—such as KPR Mill (21% of revenue) and Arvind Ltd. (30%)—also saw selling pressure, as the market factored in potential headwinds for FY26 exports.
Disclaimer: This article is based on publicly available information and market data. Investors are advised to consult certified financial advisors before making investment decisions.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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