As the Indian markets brace for a tumultuous period ahead of Donald Trump's much-talked-about tariffs on April 2, some specific stocks are in the line of focus.
Energies Company's Target Slashed
Here, we are talking about two energy companies that are recent entrants to Dalal Street: Waaree Energies and Premier Energies.
Waaree Energies hit the equity markets on October 28, 2024, while got listed on Premier Energies on September 3, 2024.
Waaree Energies and Premier Energies are trading with some major cuts in the intraday trading session on Wednesday. Now, why is that the case?
These two companies have come into the focus of the American rating broking agency Bernstein. Both of these companies have been put in the 'Underweight' category.
Underweight Stocks
According to CNBC TV18, Bernstein has slashed the price target for Waaree Energies by nearly 20 per cent from Tuesday's closing levels. The target has been brought to Rs 1,902 per share.
When it comes to the Hyderabad-based Premier Energies, the Bernstein brought the price target to Rs 693 per share.
This inturn would bring about a 24 per cent downside compared to its previous day's closing.
As a result of this, the broking agency maintains an 'Underweight' rating on both Waaree Energies and Premier Energies, citing the stage of the current market cycle, expectations of declining returns, and the stocks' rich valuations.
This has resulted in the company shares trading with cuts.
According to the American broking agency, the stage of the current market cycle, in addition to the expectations of declining returns and the stocks' rich valuations, the looming volatility in the global market has added to the possibility of a slowdown in the company's fortunes.
Waaree Energies Ltd
When we look more closely at the performance of the company stocks today, Waaree Energeis declined by a colossal 3.29 per cent or Rs 78.35, after opening for the day on a negative note.
This decline pushed the total value of Waaree stocks Rs 2,301.50 per share.
Premier Energies Ltd
Premier Energies was not far behind on the day of decline. The shares of this energy company slumped below the Rs 900 mark.
This resulted in the overall value of the stocks dropping to Rs 888.35, thank to drop of 2.38 per cent or Rs 21.65.
