08 Sep , 2021 By : Kanchan Joshi
Stock market today: The Union cabinet on Wednesday approved Rs10,683 crore production linked incentive or PLI scheme for textile sector, thus, experts are now bullish on textile stocks after the announcement. They said that market has already started giving positive signals as textile stocks have surged up to 6 per cent in the intraday trade session.
Arvind shares shot up around 6 per cent, Nitin Spinners stock surged near 4 per cent, Deepak Spinners hit 5 per cent upper circuit while Grasim share price went northward to the tune of near 2 per cent. Experts believe that this bull run in the textile counter may continue further and advised investors to buy quality textile stocks like Arvind, Raymond, etc.
Speaking on the reason for such rise in textile stocks today; Saurabh Jain, AVP — Research at SMC Global Securities said, "This rise in textile stocks today can be attributed to the cabinet approval to PLI scheme for textile sector. The market was expecting this from today's cabinet meeting and hence textile stocks have been buzzing since early morning deals. As the cabinet approval for PLI scheme to the textile sector has been announced, some quality textile stocks are expected to extend this rally in upcoming trade sessions as well."
Asked about the textile stocks that one can add to one's stock portfolio; Sumeet Bagadia, Executive Director at Choice Broking said, "One can buy Arvind at current market price for target up to Rs110 to Rs115 maintaining stop loss at Rs90 per stock levels. Similarly, one can buy Raymond shares at current market price for short-term target of Rs480 to Rs500 maintaining stop loss at Rs410."
Echoing with Sumeet Bagadia's views; Mudit Goel, Senior Research Analyst at SMC Global Securities said, "One can initiate momentum buy in Grasim shares for the short-term target of Rs1640 maintaining stop loss at Rs1550."
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