Why did Waaree Energies, Premier Energies stock slip up to 11% in trade?

Waaree Energies and Premier Energies stock tumbled up to 11 per cent after the new US tax bill was approved

Waaree Energies and Premier Energies share price slipped up to 11 per cent in trade on Friday, May 23, 2025. The clean energy stocks were under pressure after the US passed the new tax bill that aims to rollback clean energy subsidies introduced during former President Joe Biden’s tenure.

 

At 10:28 AM, Waaree Energies shares were down 8.53 per cent at ₹2,741 per share on the BSE and Premier Energies shares were down 4.4 per cent at 1,035.75 per share. In comparison, the BSE Sensex was up 0.769 per cent at 81,508.74.   READ LATEST STOCK MARKETS UPDATES TODAY LIVE

What does the new US bill propose? 

The US Tax bill was narrowly passed with a vote of 215–214, as all Democrats opposed it, joined by two Republican lawmakers. A third Republican voted "present," underscoring the sharp divisions within the Republican Party on matters of fiscal responsibility and debt policy.

 

The bill includes tax cuts, military and border enforcement funding, and a sharp crackdown on immigration, along with the rollback of clean energy subsidies introduced during President Joe Biden’s tenure.

 

The bill proposes to:

• Extend 2017 Trump-era tax cuts for individuals and businesses
• Introduce new tax breaks on tips and car loans.
• Eliminate clean energy incentives created under the Biden administration
• Tighten eligibility for health and food aid programmes.
• Fund mass deportation infrastructure, targeting up to 1 million removals annually.
• Add tens of thousands of new border guards and immigration enforcement agents.
• ALSO READ: US House approves Trump's tax bill amid debt worries, adds $3.8 trn to debt

 

However, concerns are raised about the bill, as it is likely to add $3.8 trillion to America’s already surging national debt over the next decade, according to the Congressional Budget Office (CBO). The debt currently stands at $36.2 trillion, or 124 per cent of US gross domestic product (GDP).  ALSO READ | Here's why Power Mech shares were buzzing in trade on May 23; details

 

According to the CBO, the United States spent one out of every eight dollars on interest payments last year — more than its military expenditure. This proportion is expected to increase to one in every six dollars over the coming decade.

 

Moody's ratings have already raised concerns and downgraded the United States’ sovereign rating, citing unsustainable deficit levels and long-term structural debt risks.