Shares Of Key Nuclear Energy Players Declined Up To 5 Per Cent After Modi-Trump Meet - Know Why

Shares of key domestic nuclear energy sector players such as Bharat Heavy Electricals Ltd, NTPC and Larsen & Toubro Ltd declined up to 5 per cent on the NSE on February 14. The stocks declined following the announcement of India-US plans to build American-designed nuclear reactors in India.

Prime Minister Narendra Modi and US President Donald Trump’s historic meeting was a part of PM Modi’s two-day visit to the USA. Both Modi and Trump reaffirmed their faith in nuclear energy and spoke about their commitment to work together on US-designed nuclear reactors in India. While the announcement may bode well for nuclear energy in India, it has created concerns regarding the future of domestic companies engaged in the nuclear energy sector.

On February 14 shares of Bharat Heavy Electricals Ltd declined 5.3 per cent to hit an intraday low of Rs 191.11 apiece on the NSE. Shares of Larsen & Toubro fell 1.28 per cent to trade at an intraday low of Rs 3,221.55 apiece on the NSE. NTPC shares also declined 2.72 per cent to trade at an intraday low of Rs 298.35 apiece on the NSE.

The talks held between India and the US have taken place nearly two decades after 2008, when the India-US Civilian Nuclear Deal was first signed. In a joint statement issued on February 14, both Modi and Trump welcomed the proposed amendments to the Atomic Energy Act and Civil Liability for Nuclear Damage Act (CLNDA) for nuclear reactors. The amendments were announced as a part of the Union Budget for 2025.

“Both sides welcomed the recent Budget announcement by the Government of India to take up amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act (CLNDA) for nuclear reactors, and further decided to establish bilateral arrangements in accordance with CLNDA, that would address the issue of civil liability and facilitate the collaboration of Indian and U.S. industry in the production and deployment of nuclear reactors. This path forward will unlock plans to build large U.S.-designed reactors and enable collaboration to develop, deploy and scale up nuclear power generation with advanced small modular reactors,” the statement said.

The stocks made a slight recovery as the market closed, BHEL shares closed at Rs 192.93 apiece down by 4.4 per cent and L&T shares closed at Rs 3,231.05 apiece. Shares of NTPC closed at Rs 299.55 apiece, down by 2.33 per cent.