Based on reports from early February 2026, Welspun Living (WELSPUNLIV) shares have experienced positive momentum driven primarily by favorable trade developments. 

Key Reasons for Recent Gains:

• India-US Trade Deal Optimism: Shares in Welspun Living and other textile companies rallied on news of a new trade agreement between India and the US. The deal reportedly lowers tariffs on Indian exports to 18%, reducing a major, long-standing hurdle that had previously pressured export-oriented textile companies.
• Removal of Trade Overhang: This development is seen as removing a key negative, improving investor sentiment, and increasing the competitiveness of Indian textile products in the US market.
• Positive Sector Sentiment: The broader textile sector has been gaining momentum, fueled by both the US trade deal and previous, separate optimism regarding trade deals with the EU. 

Contextual Analysis (as of Feb 2026):

• While the company saw a 93.5% drop in Profit After Tax (PAT) year-over-year in Q2 FY26, it is experiencing a surge in investor confidence, likely betting on a reversal of this trend due to the new trade terms and improved efficiency.
• The stock has been flagged as having high valuations (P/E of 36x) in late 2025, but the recent news seems to justify the bullish sentiment for some analysts.