Green Stocks Oct 22: It's All Red For Green Stocks As Correction Continues

On a day when the broader market witnessed weakness right from the opening bell, our green pack did no better, failing to overcome the weakness in demand from investors. EPC players were the worst hit, with both Waaree RTL and SWREL logging approximately a 5% loss, even as Shakti Pumps and KPI Green struggled equally badly. The expected success of Waaree Energies IPO, which has already drawn strong investor backing, could do nothing to assuage market worries as all stocks sank, including major developers Tata Power, JSW Energy, SJVN and more.

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So where could this end? One is tempted to say, every day at close of market hours, but more seriously, most of our green stocks were already in uncharted territory for the past few weeks and months. While those attractive valuations have ensured a rush to list among many firms, the final valuations these firms attract is finally looking set to meet up with reality. While many of the firms have the numbers and prospects to demand higher valuations, it is equally true that the markets have not been this unforgiving for almost two years now. Any slip up in performance is likely to see severe punishment to stock prices. So keep an eye on results as they come in, starting with Adani Green today. For between the extreme moves, the markets will throw up some great buying opportunities as well.