Waaree Energies share price dropped over 10 percent 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 that are heavily reliant on the US for the exports.
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 percent. The profit-booking comes following a stellar debut on the bourses and sustained buying thereafter which resulted in a massive 150 percent gain from its issue price.
On October 28, the shares were listed at Rs 2,500 on the NSE, a premium of 66.33 percent against the issue price of Rs 1,503.
President-elect Donald Trump, in his victory speech, mentioned that he would stop renewable projects on “day one” of his office. Currently, several large Indian firms export solar modules to the US, and new protectionist policies could add challenges, also because India imports a significant portion of its solar cells from China.
This had a severe rub-off effect on other renewable energy stocks as well with Adani Green Energy falling over 1 percent, Kaynes Technology dropped 1 percent, 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.
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