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Waaree Energies share price dropped nearly 20% in the last three sessions; What’s causing selling pressure?
Waaree Share Price
Waaree Energies share price dropped nearly 20 per cent in the last three sessions on fears of a decline in renewable energy exports to the United States.
The impact could be severe on companies heavily reliant on the US for exports.
Trump’s ‘Day 1’ Promise – What Did He Say In His Victory Speech?
Donald Trump’s promise to halt renewable energy projects on the “first day” of his potential presidency has shaken the industry, leading to a sharp decline in renewable energy stocks. “We are going to make sure that that ends on day one,” Trump said about offshore wind farms.
This is not the first time Trump has taken a stance against the renewable energy sector. In his previous campaign, Trump claimed that solar panels require massive spaces, like entire deserts, to generate energy. However, the sector disagrees with Trmup’s view on the matter. According to the Solar Energy Industries Association, the actual land requirement for solar panels is relatively small, with most utility-scale solar operating today taking up less than 600,000 acres.
If Trump continues with his stance, clean energy projects are expected to suffer a major blow as he might reduce the tax benefits given to the projects. If that happens it could cripple the industry’s growth.
A Trump presidency could result in the rollback of environmental regulations introduced by the Biden administration, easing operations for fossil fuel companies. This shift in energy policy may prioritise fossil fuels over renewable energy sources.
Waaree Energies stock declined 6.66 percent on November 11 to its intraday low of Rs 2,924.80 per share on the NSE. It opened gap down with a loss of 2 per cent today. The scrip has been on a declining trend for the last three trading sessions, down by 19.18 per cent.
“This shift could impact Indian exporters of solar and renewable energy equipment,” he says while predicting that the major effects will be felt over the medium term, within three to four years, though “the short-term impact is expected to be minimal,” Rupesh Sankhe, Senior Analyst at Elara Capital told Moneycontrol in its earlier report.
Analyst believes that some Indian companies, like Waaree, have a US export component in their revenue and may need to adjust their expansion plans if the US prioritises domestic manufacturing.
Shares of the company were listed two weeks back on October 28 at Rs 2,500, commanding a premium of 66.3 per cent over the issue price of Rs 1,503 per share on the National Stock Exchange (NSE).
Waaree Energies currently operates five manufacturing plants across India, with locations in Surat, Tumb, Nandigram, and Chikhli in Gujarat, as well as IndoSolar in Noida, Uttar Pradesh.
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