US Trade Deal Throws Lifeline to India’s Renewables Stocks

blrth1s)r)5bgx0komdup}87_media_dl_1.png BloombergArticle content(Bloomberg) — India’s renewable energy stocks are starting to shake off their status as stragglers after President Donald Trump’s surprise trade deal with the nation.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentSince the accord was unveiled last week, some of the country’s clean power stocks have ranked among the top gainers on a Bloomberg gauge of global peers after kicking off the year as laggards. Solar-energy firms Insolation Energy Ltd. and Oriana Power Ltd. have both surged more than 24% in February, recouping most of January’s losses.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentStrategists and fund managers are assessing whether the rebound can sustain. The trade agreement halves tariffs on Indian goods to 25%, with a further cut to 18% once an interim deal is signed. The lower levies reopen the world’s largest economy to the South Asian nation and helps ease concerns about oversupply at home.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“We’re seeing renewed interest in India broadly and in the energy transition in India, specifically, post-trade deal,” said Aniket Shah, head of sustainability and transition strategy at Jefferies Group LLC.Article contentThe sector had been under pressure for months. Companies grappled with fears of a solar supply glut and slowing exports as Chinese producers undercut prices, and delays in building transmission infrastructure. Even so, the industry pushed ahead with expansion plans to meet Prime Minister Narendra Modi’s pledge to boost clean power capacity to 500 gigawatts by 2030 and reduce reliance on fossil fuels. Article contentPricey valuations have also tempered enthusiasm.

Adani Green Energy Ltd., one of India’s biggest renewable energy producers, trades at 42 times forward earnings, data compiled by Bloomberg show. JSW Energy Ltd. and HBL Engineering Ltd. fetch multiples of about 30 times, versus 22 times for Bloomberg’s global sector gauge.Article contentArticle contentWhile some companies have been richly valued based on long-term prospects, execution issues are prompting investors to rethink how much they are willing to pay up for potential growth, said David Smith, senior investment director of Asian equities at Aberdeen Group Plc.Article contentValuation concerns have kept him out of the sector for the past six to nine months.Article contentEasier access to US buyers could support earnings. The US has been India’s dominant solar export destination for years, accounting for 97% of its solar module shipments in the first half of 2025. Article contentHigher tariffs had threatened to make the trade unviable. With levies now lowered, Indian producers may be able to better compete with regional rivals, according to Prashant Paroda, a portfolio manager for Allspring Global Investments.Article content“If there is a rebound in exports, maybe to the US, you could see some sort of revival in these stocks,” he said.Article contentTrending BlackBerry cofounder Michael Lazaridis invests in Vancouver-based AI startup Innovation Trump privately weighs quitting CUSMA trade deal he negotiated Economy Subscriber only. These are the TFSA and RRSP tricks that can make you a fortune Subscriber only Personal Finance Garry Marr: Say no to a free lunch for your RRSP today, expect fewer menu options at retirement Retirement How Canada's nation-building push could still get stuck in regulatory limbo Mining Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. BlackBerry cofounder Michael Lazaridis invests in Vancouver-based AI startup Innovation Trump privately weighs quitting CUSMA trade deal he negotiated Economy Subscriber only. These are the TFSA and RRSP tricks that can make you a fortune Subscriber only Personal Finance Garry Marr: Say no to a free lunch for your RRSP today, expect fewer menu options at retirement Retirement How Canada's nation-building push could still get stuck in regulatory limbo Mining