If you were looking at the 20% upper circuits on your terminal today, you weren’t just seeing a rally; you were witnessing the birth of a new export superpower. The truth is, while the 1,500-point Budget crash was about domestic taxes, today’s ₹13 Lakh Crore wealth explosion is about the “Common Man” companies finally beating their global rivals in the world’s biggest market.
The Shocking Upper Circuits: Why These 3 Sectors Exploded
The market didn’t just “recover” today, February 3, 2026; it hand-picked winners. Shares of Gokaldas Exports, Apex Frozen Foods, and Goldiam International didn’t just rise—they were “locked” in upper circuits within minutes of the opening bell.
Why the frenzy? Because the 18% reciprocal tariff deal signed between PM Modi and President Trump is a “death blow” to our competitors. For the last year, Indian exporters were struggling under a 50% tariff (which included a 25% “oil penalty”). By slashing this to 18%, the US has effectively given Indian shrimp, shirts, and stones a 2-7% price advantage over countries like Vietnam, Bangladesh, and China.
The Export Power-Shift: Old Tariffs vs. The New 18% Blueprint
| Sector | Old Tariff (Penal Rate) | New Tariff (Feb 2026) | Competitive Advantage |
| Textiles & Apparel | 50% | 18% | Beats Bangladesh (20%) |
| Frozen Shrimp/Seafood | 25% – 50% | 18% | Beats Vietnam & Thailand |
| Gems & Jewellery | 25% | 18% | Massive Edge over China (34%) |
| IT & Digital Services | 25% | 18% | Lower Cost of Delivery |
How the Deal Creates a New Class of Export Multibaggers
Here’s the catch: This isn’t just a one-day pump. The reduction to 18% is a structural shift that allows Indian firms to operate at 100% capacity for the first time in two years.
1. The “Blue Revolution” in Shrimp Stocks
India is the world’s largest exporter of shrimp to the US, but our margins were being eaten by tariffs. With the new 18% rate, companies like Avanti Feeds and Apex Frozen Foods (both hit 20% upper circuit) are seeing an immediate ₹7 per $100 saving. This goes straight to the bottom line, turning these low-margin players into high-margin “Cash Cows.”
2. The “Stitch in Time” for Textiles
The textile sector is India’s second-largest employer. The “Secret Blueprint” of the trade deal gives Indian garments a 200-basis-point edge over Bangladesh. Stocks like Gokaldas Exports (up 20%) and KPR Mill (up 17%) are now the “Must-Haves” for 2026, as US retailers shift billion-dollar contracts from Dhaka to Tirupur.
3. The “Sparkle” in Gems & Jewellery
While the US accounts for 30% of our gem exports, shipments had crashed 44% last year. Today’s 20% surge in Goldiam International and Vaibhav Global signals the return of the American consumer. With China facing 34% tariffs, Indian diamonds are now the “only game in town” for US retailers.
What the Analysts Are Saying
The sentiment shift on Dalal Street is historic.
- V.K. Vijayakumar (Geojit): “The 18% rate is the ‘Best Case Scenario.’ We are moving from a defensive posture to an aggressive export-led growth cycle.”
- Brokerage Consensus: Firms like Bernstein and Motilal Oswal have issued “Double Upgrade” ratings for the EMS and Textile sectors, citing 15-20% earnings upside in FY27.
- The “Lakh-Crore” View: Large PMS funds are dumping “expensive” domestic consumption stocks and rotating heavily into these “undervalued” export multibaggers.
Pro-Tip: The “Margin of Safety”
When scouting for the next multibagger, look at the Debt-to-Equity ratio. Companies like KPR Mill and Avanti Feeds have clean balance sheets and will be the first to reinvest their “tariff savings” into expanding factory lines.
The Bottom Line
The India-US Trade Deal is the “Holy Grail” for Indian exporters. By locking in an 18% tariff, the government has secured the futures of millions of workers in the shrimp, textile, and gem industries. For the Retail Investor, the “Smart Money” move is clear: the Budget 2026 STT Hike was the distraction; these Export Multibaggers are the real destination.
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