July 18: Nifty, Green Stocks Diverge Completely

On a day when the Nifty Index diverged significantly from the small-cap and midcap indexes, our basket of green stocks, most of which are in the latter two, suffered. Other than EPC player KPI Green Energy, which has just gone for a stock split, and was locked at the upper circuit, every green stock in the portfolio suffered losses, as the broader market waits for the budget. Expectations are high that the budget will build on support already announced for green energy, with any significant lack of action likely to lead to more selloffs in the space. However, with the kind of run-up Green energy stocks have seen, one could argue there is enough space for a correction in most cases.

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For SWREL, even its Q1 results today, which showed the return to profits, albeit tiny for the quarter, failed to prevent a drop in stock price.