Green Stocks Dec 19: Green Stocks Slide With Broader Market

The news of the US Fed going in for fewer rate cuts than expected in 2025 spooked global markets, and the Indian markets as well. Thus, interest rate-sensitive sectors reflected the weakness in the markets. Green energy stocks, almost all of which have a healthy debt situation, but will invariably be raising more debt in the future for their expansion plans, mirrored the market trend accordingly. In a business of fine margins, the cost of funds will matter and firms will see a competitive advantage in their funds management as well increasingly. That means low-debt firms like Shakti Pumps continued to hold out, even as Acme Solar Holdings fell more than most. NTPC Green, another developer managed to limit losses due to its intrinsic strengths and the strong balance sheet of its parent.

The consensus in the market seems to indicate that most green energy stocks including those beyond our pack, are fairly priced with a bias towards a premium. Any missteps in results, starting with Q3 results in January will lead to a correction, in all likelihood. It will be especially interesting to see the numbers from the EPC firms in our pack, as these have been in a funk of sorts since July or August this year, unable to break out, despite fair results. IT will take some pretty strong performance and confident guidance for the next few quarters, especially on the margin front for these stocks to recover their glory days one feels.