Green Stocks June 16- Green Stocks Make Summer Push

The Indian markets ended a two-day losing streak with a strong session today, and green stocks made the most of the rebound. Larger firms in our pack—such as developers NTPC Green and Adani Green, or manufacturers Premier Energies and Waaree Energies—all outpaced smaller players like EPC firm Shakti Pumps and Sterling and Wilson Renewable Energy.

The gains in a rising market came as no surprise, as the value equation still favors most green stocks following recent corrections.

We believe today’s rise is also a relief rally after renewed hostilities in the Middle East. Going forward, progress on the much-anticipated Indo-US trade deal will likely shape the market narrative, even as concerns surrounding China’s export controls continue to linger in the background for green stocks.

Delays on this front are expected to raise investor concerns, particularly for the two wind energy firms—Inox Green and Suzlon—which have seen a strong revival in investor interest in recent months.

With the green energy pack still trading well below recent highs, conditions remain far from ideal for a sustained upward trend.

Meanwhile, the rush of green energy IPOs continues to gather pace, with Oswal Pumps the latest firm set to list following a successful issue. It will be another interesting company to watch, thanks to both its business model and its North India base.