Solar Stocks Rebound Following Previous Day's Decline Amid Brokerage Downplaying of US Tariff Concerns

Indian Solar Stocks Recover After Steep US Duties

Market Update: Thursday, [Date]

Shares of Indian solar companies opened higher on Thursday, recovering modestly after sharp losses earlier in the week. The bounce is attributed to reassurances from brokerages that the steep US countervailing duties will have a limited impact on companies that do not export modules made using India-manufactured solar cells.

Key Gainers:

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• Waaree Energies rose 0.9% to Rs 2,731.5 in early trade, extending its rebound.
• Premier Energies gained over 1% to Rs 737.7.
• Borosil Renewables was up 1.3%.

Other solar stocks also traded in the green at the open, with Saatvik Green Energy, Servotech Renewable Power System, Solex Energy, and Vikram Solar up 0.9-1.9%. Waaree Renewable Technologies and Sterling and Wilson Renewable Energy also posted modest gains.

Brokerage Notes:

• Nomura reiterated a buy call on Waaree Energies with a target price of Rs 2,709, citing lower impact on firms with US manufacturing capacity and modules made using non-Indian cells.
• Motilal Oswal Financial Services reiterated buy ratings on Waaree Energies and Premier Energies, with target prices of Rs 3,514 and Rs 1,000, respectively.
• Nuvama Institutional Equities maintained a buy call on Waaree Energies with a target price of Rs 3,867, citing its evolving renewable energy platform and diversified revenue mix.

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US Trade Case Update:

The US Commerce Department imposed preliminary countervailing duties of about 126% on solar imports from India, citing unfair government subsidies. This ruling is the first of two determinations in the trade case, with a separate decision on alleged dumping expected next month.