Energy Stocks Position for Gains as Markets Eye Recovery from Iran Tensions
Authored by baaballufabet.com, 03/04/2026
US President Donald Trump's announcement of withdrawing from the Iran-Israel conflict has sparked expectations of market recovery, lifting prospects for Premier Energies, Waaree Energies, ONGC, and Oil India shares. These stocks stand to benefit from returning risk appetite and steady crude dynamics amid reduced geopolitical risks. India's accelerating renewable energy transition adds structural support, particularly for solar leaders.
Geopolitical Relief Fuels Short-Term Optimism
Trump's conflicting statements have introduced volatility, yet markets anticipate a US exit from the Iran conflict soon. This scenario could sustain a positive trend over the next two to three weeks, provided no extreme events unfold in the coming 10 to 15 days. Risks from the war may already be priced in, paving the way for selective buying in energy names as investor confidence rebuilds.
India's Power Capacity Hits Milestone Amid Renewable Push
Total installed power capacity reached 520 GW as of January 2026, with non-fossil sources comprising 52 percent. Renewables drove a record 52.5 GW addition in FY26 through January, including 43 GW from renewables and 35 GW from solar alone. Solar capacity projections point to 509 GW by FY36, bolstered by cost advantages, scalability, and quick execution, while wind targets 155 GW and hydro-nuclear ensure grid stability.
Analysts Target Solar and Upstream Leaders
YES Securities forecasts Waaree Energies at Rs 4,191, a 35.56 percent upside from Rs 3,091.20, and Premier Energies at Rs 1,182, up 30.57 percent from Rs 905.25. Both stocks posted 17 percent and 27 percent monthly gains despite volatility. Upstream players ONGC and Oil India gain from operational leverage.
| Stock | Entry Range (Rs) | Target (Rs) | Stop Loss (Rs) |
|---|---|---|---|
| Premier Energies | 931 – 937.7 | 975 / 1,000 / 1,050 | 880 – 895 |
| ONGC | 285 – 288 | 320 | 274 |
| Oil India | 470 – 474 | 525 | 449 |
| Newgen Software | ~430 | 500 / 540 | 375 |
| Cello World | 390 – 400 | 420 / 435 / 500 | 375 |
Storage and Diversification Anchor Long-Term Growth
Energy storage systems like BESS and pumped storage address renewable intermittency, managing peaks and enhancing flexibility for deeper integration. Non-fossil capacity eyes 786 GW by FY36, or 70 percent of the mix, through solar expansion, wind, hydro, and nuclear backed by policy momentum. This multi-decade shift positions solar manufacturers and balanced energy firms for sustained expansion.