Green Stocks April 1- Green Stocks Weighed Down By Broader Worries

The start of the new financial year was anything but auspicious, as stocks slipped due to worries about the impact of the US tariff action starting tomorrow. While the markets will take time to digest the impact of the US moves, some green stocks in our pack did buck the trend and stage a smart recovery. Chief among these was EPC firm Sterling and Wilson Renewable Energy, which spiked up on news of fresh order wins, including its first wind energy contract. ironically, for wind energy maker Suzlon, it was the news of a few order cancellations from 2023 orders that hurt, as the stock slumped over 3%, despite a still strong order book.

As we have been saying, with most green stocks having subsided to levels where they actually do justify their numbers broadly, further movements will be news based, as we saw for SWREL. Thus, at least for this quarter, as results start coming in towards the end of April or early May, expect a lot more volatility with a bias towards upwards movement, assuming the results are in line with guidance. Firms like Waaree Energies and Waaree Technologies (the EPC arm of Waaree Energies) should be very interesting to watch, as a large part of the corrections seen in these firms is linked more to the risk of future events than their current performance, although Waaree RTL has a little catch up to do after a disappointing set of Q3 numbers.

So there we are, the start of a year where most firms will expect to deliver life best numbers, while still feeling the pressure from developments not necessarily in their hands. It will be a test that truly sorts out the more resilient firms, and should make for fascinating tracking.