The shares of textile companies surged on September 16 amid rising hopes for trade talks between India and US to resume.

Brendan Lynch, a trade negotiator with the Office of the US Trade Representative (USTR) will be arriving today in India to discuss 'trade issues' between Washington and New Delhi. Special Secretary Rajesh Agarwal however clarified that Lynch's one-day visit is not the sixth round of trade negotiations between India and US, but only a meeting to 'discuss' trade issues.

India-US trade relations:

The two nations had opened negotiations for a Bilateral Trade Agreement (BTA) in March this year, and have conducted five rounds of talks so far, with the last one being held in July in the US. However, following US President Donald Trump's decision to double tariffs on India to a whopping 50 percent, the next round of trade talks slated for August 25-29 in New Delhi was deferred.

Indo-US relations have seen some improvement in recent days with Trump and Prime Minister Narendra Modi agreeing to resume trade talks. Trump called Prime Minister Modi a "dear friend" and talked optimistically about the trade momentum. PM Modi, in turn, reaffirmed India and US as "close friends and natural partners" and expressed confidence that current trade talks would unlock significant potential for both nations.