Green Stocks May 15: Stocks Consolidate In Positive Market

As the large caps finally had their day in the sun, for our green energy pack, it was a time to consolidate gains from yesterday. Thus, other than a Gensol that is purely a speculative stock today, none really ran away with gains, although almost none lost any ground, other than Acme Solar, which had run up sharply yesterday.

Tata Power delivered a good set of numbers for Q4, but the expectations seemed to have been baked in into the stock, as the stock barely moved. We believe it will continue to do better, purely on the basis of its presence across the energy chain, with almost all segments performing well with a positive outlook for the future.

KPI Green continued to gain ground as well, backed by strong results and a much-awaited realignment of its beaten-down valuations. Sterling and Wilson Renewable, after a couple of days on the upper circuit, finally paused or breathed today, although it stayed in positive territory. The two module and cell manufacturers, Premier Energies and Waaree Energies, also ended up in positive territory, with the odds of a positive surprise on the margin front in the next quarter still a real possibility for these two. Premier Energies is yet to release its Q4 numbers, and expectations are high for a strong show there as well.

A good show on expiry day augurs well for the markets, as well as our green pack, although many technical experts have called for caution with the market over the 25K level on the Nifty. Basically, they expect a wave of selling to come at this level, something that will be more obvious tomorrow. For now, driven by the return of foreign funds as well as continuous inflows from domestic players, the news is finally good for the markets, and the green energy pack, with its above-average growth prospects, should catch the fancy of more than a few investors.