US-Bangladesh Deal: Indian Spinning Stocks Under Pressure, Exports at Risk

• Indian spinning stocks like KPR Mill, Ambika Cotton Mills, Nitin Spinners, and Trident fell up to 8% this week.
• The decline follows a US-Bangladesh deal offering reduced tariffs and zero-tariff incentives for Bangladeshi textiles using American cotton.
• This raises concerns for Indian spinning companies, as Bangladesh currently imports significant cotton and yarn from India.
• Near-term impact is limited due to logistical challenges and Bangladesh's underdeveloped spinning sector.
• However, the deal poses a medium to long-term threat to Indian cotton exporters and spinning mills, potentially reducing exports and operating margins.