Waaree Energies, Aarti Ind, others: Stocks of renewable energy majors, chemical manufacturers rise up to 14% on India-US trade deal

Waaree Energies, Aarti Ind, others: Stocks of renewable energy majors, chemical manufacturers rise up to 14% on India-US trade deal

Shares of renewable energy majors, chemical manufacturers rose up to 13% on February 3 on the India-US trade deal announcement.

Shares of renewable energy firms like Waaree Energies climbed 13.6%, Premier Energies rose 9.2%, Saatvik Green Energy rose 6.3% while those of chemical manufacturers rose between 5.5% and 13.9%.

The US decision to reduce tariffs on Indian goods from 25% to 18%, along with the elimination of the additional punitive levy, represents a strategic turning point for the solar sector, rather than just a routine policy change, said Prashant Mathur, CEO of Saatvik Green Energy.

US President Donald Trump on Monday announced a trade deal with India that slashes US tariffs on Indian goods to 18% from 50% in exchange of India halting Russian oil purchases and lowering trade barriers.

Shares of other renewable energy firms like Adani Green Energy and Vikram Solar rose 10% and 8.2%, respectively.

Waaree, Adani, Vikram Solar are top Indian exporters to US.

ICICI Direct Research said although details are still awaited, it believes the reduction is likely to provide a level-playing ground to India with other competitors such as China, South Korea, Japan, EU, Vietnam, Malaysia, Indonesia, and the Philippines

India's chemical exports to the US stood at $6 billion, accounting for 18% of the overall chemical exports, the brokerage said.

Aarti Industries led gains among the pack with a 13.9% jump, followed by Gujarat Fluorochemicals up 8.1%, and Navin Fluorine International up 7.2%.