Waaree Energies, Premier Energies shares soar up to 12%. How will India-US trade deal impact stocks?

Shares of renewable energy majors, including Waaree Energies and Premier Energies, jumped sharply on the BSE, hitting a day’s high of Rs 3,125 (up 12%) and Rs 904 (up 9.3%), respectively, after India and the US sealed a long-awaited trade deal. The agreement cuts tariffs on Indian exports to the US from 50% to 18%, providing a significant boost to the sector’s growth and earnings prospects.

International brokerage firm Jefferies said that solar players Waaree Energies, Premier Energies and Emmvee Photovoltaic, alongside textile exporter Welspun Living, are seen as well placed to ride improved competitiveness and possible demand tailwinds out of the US market.

The solar sector stands to benefit significantly, with Waaree Energies among the most exposed, as 59% of its 25GW order book comes from overseas, primarily the US. With the new trade deal reducing tariffs from 50% to 18%, and further cuts on customs duties, the company’s export outlook and margins are set to improve sharply.


For Indian markets, the deal removes a key overhang that had kept foreign investors cautious and pushed equities into a phase of prolonged underperformance. Indian markets struggled through January, with the Nifty shedding over 1,000 points at its worst, while foreign portfolio investors sold billions of dollars worth of equities.

Persistent trade uncertainty, a weakening rupee and global risk-off sentiment had made Indian equities among the weaker performers across major markets. Analysts had consistently maintained that any breakthrough on the India-US trade front could act as a trigger for a market turnaround.

Jefferies argues the deal removes one of the biggest overhangs on India’s equity story at a time when the market has already outperformed MSCI Emerging Markets by 28 percentage points in 2025 and a further 14 percentage points in January 2026 in US dollar terms. Foreign portfolio investors have nevertheless pulled out about $34 billion over the past 16 months, leaving India underweight in a sample of 63 EM funds with $330 billion in assets and around 60% of those funds underweight the country versus the benchmark.

Reacting to Trump’s post, Prime Minister Narendra Modi thanked the US President.

“Wonderful to speak with my dear friend President Trump today,” Modi wrote on X. “Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement. When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation.”

Alongside the free trade agreement with the European Union concluded days earlier, India now has robust trade agreements with two of the world’s largest trading blocs—a first in the country’s economic history.

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