Responsive Industries Share Price Jumps 17% on India-US Trade Deal News
In a remarkable trading session on Tuesday, Responsive Industries share price witnessed a significant surge of 17%, driven by optimism surrounding a newly announced trade agreement between India and the United States. This agreement is set to reduce reciprocal tariffs on Indian products from 25% to 18%, providing a substantial boost to export-oriented companies like Responsive Industries.
Stock Performance and Market Reaction
The home decor stock opened at an intraday low of ₹173.50 per share on the Bombay Stock Exchange (BSE) but quickly gained momentum, touching an intraday high of ₹195.20. This sharp rise reflects investor confidence in the company's potential to benefit from the improved trade terms. According to market analysts, the stock's performance was fueled by follow-through buying after a strong gap-up opening, indicating sustained bullish sentiment.
Company's US Revenue and Export Focus
Responsive Industries has explicitly linked its growth prospects to the India-US trade agreement. In a recent press release, the company highlighted that a significant portion of its revenue from the US market comes from the export of Luxury Vinyl Plank (LVP) flooring and other resilient flooring products. For the fiscal year 2025, approximately 40-41% of its total export revenue of ₹247 crore, equivalent to around $29-30 million, originated from the US.
The company's business in the US is primarily driven by high-margin offerings, including:
- LVP flooring
- Resilient flooring products
- Synthetic leather items
Strategic Expansion and Operational Advantages
To capitalize on the growing demand, Responsive Industries operates a dedicated distribution center in Simpsonville, South Carolina, which enables next-day deliveries and efficient order fulfillment for customers across the region. Additionally, the company is actively broadening its B2C reach in the US through popular brands such as:
- ALLURE
- TRANQUIL
- BELLISIMO
- RESONATE
The company has announced plans to expand its presence in the US market further, aiming to leverage the increasing popularity of luxury vinyl tile (LVT) products in both residential and commercial sectors. This strategic approach is designed to enhance its standing in the competitive US flooring market and drive higher-margin export growth.
Technical Analysis and Future Outlook
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Responsive Industries share price has broken above its short-term moving averages due to the strong momentum. He noted that in the near term, the upside trend could continue, with the 200-day simple moving average around the 210 zone acting as the next key target. On the downside, immediate support is seen near the 180 level.
Bhosale emphasized that the stock's sharp rally reflects positive market sentiment, but investors should remain cautious and monitor key technical levels for potential reversals.
Investment Disclaimer
The views and recommendations provided in this article are those of individual analysts and do not represent the views of Mint. Investors are advised to consult with certified experts before making any investment decisions.
