Premier Energies and Waaree Energies saw their share prices drop sharply after being added to the NSE futures and options (F&O) segment on Dec 31.
What happened to the shares?
On Jan 5, Premier Energies fell about 7.5% to ₹782.40, while Waaree Energies slipped nearly 5% to ₹2,723. Since the F&O inclusion, the two stocks have lost roughly 8%‑9% overall.
Why does F&O inclusion matter?
Being part of the F&O market usually brings more trading activity, better liquidity, and the ability for investors to hedge their positions. However, the new contracts can also attract short‑term traders who bet on price moves, which sometimes adds volatility.
Analyst view
- Bernstein kept an “Underperform” rating on both stocks.
- Target price for Premier Energies: ₹718 (about 15% lower than the recent close).
- Target price for Waaree Energies: ₹2,109 (over 26% lower than the recent close).
- Both analysts see downside risk, meaning the shares could keep falling.
Recent performance snapshot
- Premier Energies: down 12% in the past month, over 23% in six months, and more than 27% since it listed.
- Waaree Energies: down 7% in the last five days and about 6% over six months.
What should investors think about?
If you hold either stock, consider why the price is falling and whether the analyst targets match your expectations. The downside potential highlighted by the brokerage suggests caution, but keep in mind that market sentiment can change quickly.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.