Electrically conductive yarns have become significantly important with the growth of electronic textiles market. Lack of elasticity or ability to maintain conductivity while undergoing stretch, lack of apparel friendly mechanical, tactile properties and difficulty of integration to fabrics have been key challenges faced by conductive yarns limiting the development of electronic textiles. In this study, two electrically conductive stretchable double covered yarns were developed using hollow spindle spinning principle with stainless steel and silver coated nylon yarns being used as the conductive element. The yarns were tested for their electrical behavior subjected to stretching and washing. An empirical model was developed to understand the elastic electrical behavior of the yarns. Further, developed yarns were tested for yarn count, tenacity, breaking elongation, yarn modulus, hand feel and possibility of integrating with knitting with the aim of assessing the suitability of two yarns for use in electronic textiles. Yarn with stainless steel showed good electrical properties, while yarn with silver coated nylon showed better mechanical and tactile properties with ease of integration to fabrics with knitting.