Green Stocks Mar 20: Stocks Struggle To Match Market Optimism

On a day when the Nifty hit a 5-week high, and the mid and small-cap indices were up appreciably by up to 0.70%, green energy stocks failed yet again to lead. While a few stocks like KPI Green rose sharply, the rise comes after a relentless fall that has effectively taken the stock to levels well below its recent highs in August or earlier. For others like Premier Energies, the rise today while welcome, will still leave them way off their recent highs.

India's largest green energy developer, Adani Green rose over 1% backed by news of a fresh commissioning of a 250 MW plant in Rajasthan. the other biggie, NTPC Green stayed below the psychological Rs 100 mark despite the market surge. It was a similar take for Acme Solar and the rs 200 mark actually. Shakti pump also seemed to run out of steam yet again near the Rs 1000 mark, retreating eventually to Rs 980 levels. Gensol finally seems to be finding support at Rs 240 levels, after the relentless hammering the stock took due to a rating downgrade.

Benefiting slightly from a ratings upgrade was Waaree Energies, the largest module maker in India, that managed to stay green through the day. The underlying weakness in Green energy stocks portends a consolidation mode for the pack, as it will take a much stronger trigger than a few days of market recovery for these stocks to develop upward momentum. We will continue to advise caution and a wait and watch approach for now for any investors looking to ride the undoubted opportunity in the space.