Green Stocks Dec 5: Rare Day Of Underperformance For Green Stocks

On a day when the Nifty 50 mounted a strong show, our Green Energy Pack had a rare day, with just Waaree Energies standing out with a 4% gain. After its surprisingly strong run this week, NTPC Green corrected over 4.5% today, a healthy correction, many would say.

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Premier Energies also paused after the strong show this week, as did developer Acme Solar. the EPC pack continued to consolidate. with all of them including Solar Pump leader Shakti Pumps struggling to keep in step with the broader market. JSW Energy, which had also shed some gains of the past earlier this week, managed to recover a little.

With the weekly expiry behind them, where is the market headed, and with it, our Green pack? We would venture to say it is time for extra caution, as the recent volatility in the market has taken its toll on our Green pack as well. While NTPC Green has been an obvious outperformer since its listing last week, for most of the other stocks, current valuations are at a significant discount to what they were enjoying as recently as early last month. While the reasons in cases like Adani Green go beyond normal business causes, for others, investors might be well advised to make their moves based on real news.