Shares of Premier Energies Ltd. and Waaree Energies Ltd. fell as much as 4% on Friday, May 23, after their solar and clean energy peers were battered in the overnight trading session on Wall Street.
Clean energy stocks in the US like Sunrun, which is the biggest rooftop solar company in the US, NextEra Energy, which is the biggest developer of wind and solar projects in the US saw losses that ranged from 7% to as high as 37% in a single trading session.
The stocks fell after the new tax bill, proposed by US President Donald Trump, aims to eliminate funding that these companies received under the Biden Administration's Inflation Reduction Act.
The bill also proposes to repeal grants intended to reduce air pollution, greenhouse gas emissions or purchase electric heavy-duty vehicles.
The 30% federal tax credit for taxpayers, who install solar rooftop systems, will also be abolished under the new bill.
This bill was narrowly passed in the US House of Representatives by a 215-214 margin and will now head to the senate for further passage.
The news is a sentiment negative for stocks like Premier and Waaree, who have exposure to the export market.
At the start of the first quarter of financial year 2026, Waaree had an order book of close to ₹47,000 crore, 57% of which was towards the export market.
Brokerage firm Jefferies wrote in its note that such a move could meaningfully curtail utility scale and rooftop installations and that it sees a risk to 57% of Waaree Energies' order book that comes from the US.
It also said that the US export opportunity is narrowing earlier than anticipated.
Shares of Waaree Energies have extended their losses to 10% and are now trading at ₹2,7265. Premier Energies shares are also down 4.5%, although the company has negligible exports. Both stocks are the top losers on the Nifty 500 index.
Clean energy stocks in the US like Sunrun, which is the biggest rooftop solar company in the US, NextEra Energy, which is the biggest developer of wind and solar projects in the US saw losses that ranged from 7% to as high as 37% in a single trading session.
The stocks fell after the new tax bill, proposed by US President Donald Trump, aims to eliminate funding that these companies received under the Biden Administration's Inflation Reduction Act.
The bill also proposes to repeal grants intended to reduce air pollution, greenhouse gas emissions or purchase electric heavy-duty vehicles.
The 30% federal tax credit for taxpayers, who install solar rooftop systems, will also be abolished under the new bill.
This bill was narrowly passed in the US House of Representatives by a 215-214 margin and will now head to the senate for further passage.
The news is a sentiment negative for stocks like Premier and Waaree, who have exposure to the export market.
At the start of the first quarter of financial year 2026, Waaree had an order book of close to ₹47,000 crore, 57% of which was towards the export market.
Brokerage firm Jefferies wrote in its note that such a move could meaningfully curtail utility scale and rooftop installations and that it sees a risk to 57% of Waaree Energies' order book that comes from the US.
It also said that the US export opportunity is narrowing earlier than anticipated.
Shares of Waaree Energies have extended their losses to 10% and are now trading at ₹2,7265. Premier Energies shares are also down 4.5%, although the company has negligible exports. Both stocks are the top losers on the Nifty 500 index.
First Published: May 23, 2025 9:25 AM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!