Green Stocks Dec 5- Stocks Remain On Slippery Slope

Another day of contrasting fortunes ruled the markets today, as broader large-cap indices firmed up, even as green stocks bore the brunt of a sell-off. For many, it was even worse than the gradual slip they had experience this week, with sharp drops of over 2% in many cases. Stocks that had moved up on the back of order announcements, or even results in the case of Emmvee, have pretty much slumped to levels below their earlier lows.  

As investors continue to nurse losses wherever they have bought in the past six months or more, the consequences could be felt for a long time to come, be it in future IPOs or even in fund-raising efforts by existing firms. Consider how stocks like Shakti Pumps and Oswal Pumps have been ravaged, down over 20% in just the past three months. And in the case of the former, it's not as if they had delivered any returns to investors in the previous six-month period. Is this the buying opportunity everyone was waiting for? Quite possibly, without trying to time it down to the last 5%, we believe so. 

The US market, where 7 odd stocks have pulled up the markets until now for almost a year now, is a good reminder of how strong market dichotomy can be at times. The ascendance of Index funds in India will only push our own markets in that direction as well.  For a market counting on a US trade deal, clearly a visit by Russian President Putin was never going to work. But be as it may, the pressure will continue for some time as investors find their patience tested to limits many would never have experienced before.

List of Green Stocks