Stock Under Rs 50 Gains Momentum: How Trump’s Victory Fuels This Stock!

Can this stock below Rs 50 touch become next multibagger as it gains momentum after Trump’s presidential victory

The US dollar has recently climbed to a one-year high against major currencies, fueled by momentum from Donald Trump's presidential election victory. This surge has pushed the currency to its strongest level since May 1, with the dollar index hitting 106.21 against a basket of global currencies.

The rise in the dollar index has undoubtedly sent a shiver down the spine of emerging markets, especially the Indian markets. However, one thing has become clear after Trump’s victory: the textile sector in India is likely to gain traction.

A stock poised to benefit from this is Yarn Syndicate Limited. Incorporated before India’s independence in 1946, the company commenced operations as dealers in all types of yarn shortly thereafter. Over the years, Yarn Syndicate became one of the pioneers in exporting a wide variety of yarns, including cotton, polyester cotton, polyester viscose, flax, jute, bamboo, and organic yarn. With over four decades of experience, it has established itself as one of the leading exporters of cotton and other yarn varieties in India.

The stock has been outperforming, delivering an impressive 96 per cent return on a year-to-date (YTD) basis. Technically, the stock recently witnessed a breakout from a symmetrical triangle pattern on the monthly chart, with a target price of approximately Rs 65.

The Confederation of Indian Textile Industry (CITI) has expressed optimism about the impact of Donald Trump’s potential return as US President on India’s textile and apparel exports. In 2023, the US accounted for about 27% of India’s total textile exports, underscoring its importance as a key market for the industry.

During the first five months of the financial year 2023-24, India’s textile exports to the US grew by 6%, outpacing competitors like China, Vietnam, and Bangladesh. CITI Chairman Rakesh Mehra highlighted that this growth reflects India’s increasing appeal among US buyers.

Mehra noted that Trump’s previous administration emphasized reducing reliance on China, aligning with India’s ambitions to expand its market share in the US. He stated, "We are optimistic that under the new administration, India can further strengthen its position as a key alternative to China."

He also urged the new US administration to work closely with India to help position the country as a leading supplier of quality textiles. Strengthening this bond could mark a new phase in India-US trade relations, offering US retailers and consumers a viable alternative to Chinese imports.