Last Updated:
Waaree Energies share price dropped over 10% in the last two trading sessions amid fears of a decline in renewable energy exports
Waaree Share Price Today
Waaree Energies’ share price dropped over 10 per cent in the last two trading sessions amid fears of a decline in renewable energy exports to the United States during the presidency of Donald Trump. The impact could be severe on companies heavily reliant on the US for exports.
Trump’s ‘Day 1’ Promise Send Renewable Energy Stocks Tumbling
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, the clean energy projects are expected to suffer a major blow as he might as well reduce the tax benefits given for the projects. If that happens it could cripple 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.
This had a severe rub-off effect on other renewable energy stocks as well with Adani Green Energy falling over 1 per cent, Kaynes Technology dropped 1 per cent, Olectra Greentech, Websol Energy among others also traded in the red.
“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.
Waaree Energies stock declined nearly 5 percent on November 8 to quote at Rs 3,186 per share on the NSE. After the two days of decline, the company’s total market capitalization has declined to Rs 93,213.34 crore from an earlier over Rs 1 lakh crore.
The Waaree Energies scrip slipped into the red on November 7, falling as much as 8 per cent. The profit-booking comes following a stellar debut on the bourses and sustained buying thereafter which resulted in a massive 150 per cent gain from its issue price.
On October 28, the shares were listed at Rs 2,500 on the NSE, a premium of 66.33 per cent against the issue price of Rs 1,503.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
