Waaree Energies shares plunge 9% as renewable energy selloff deepens on Trump policy fears
Waaree Energies fell as much as 9.4% on Monday, reaching Rs 2,030 on the BSE, as investors fled renewable energy stocks amid concerns about the policy direction under U.S. President Donald Trump. The decline comes as fears mount over increased tariffs on solar imports and a potential rollback of pro-renewables legislation in the U.S., a key market for Indian solar exporters.
The broader renewable energy sector was caught in the downdraft, with Adani Green Energy slipping nearly 3% to Rs 983, Premier Energies shedding 4.8% to Rs 952, NTPC Green Energy dropping 4.3% to Rs 107.35, and Suzlon Energy declining 5% to Rs 49.94.
Market sentiment has soured as Trump’s energy policies mark a stark contrast to those of the Biden administration. Analysts warn that the potential dismantling of the Inflation Reduction Act (IRA) — a cornerstone for clean energy expansion in the U.S. — could slow solar adoption, impacting Indian exporters like Waaree Energies and Premier Energies, which depend on U.S. demand.
Trump’s anticipated reinstatement of tariffs on solar imports, potentially extended to Southeast Asian nations, further compounds the challenges. While Indian firms like Waaree Energies and Premier Energies are setting up manufacturing facilities in the U.S. to hedge against these risks, analysts caution that rising costs and a global glut in solar module supply could compress margins.
Adding to the sector's woes, Nuvama Research had raised concerns about a global solar module glut, with prices dropping to an all-time low
