Green Stocks April 21: Suzlon Steals The Show

On a day when the markets had another exuberant day, green energy stocks were relatively subdued, with some even declining against all odds. The declining stocks, NTPC Green and Borosil Renewables, were more than offset by a strong day for Suzlon, Inox Wind, and EOC firms Sterling and Wilson Renewables and Shakti Pumps. Suzlon's sharp recovery seems more linked to the way the stocks had been beaten down from previous highs, besides a fresh proposal on sourcing wind turbines domestically, but it remains well priced in our view. That means, much like the rest of the pack, it will need solid news based support to discover higher levels for many of these stocks.

While Waaree RTL enjoyed a strong two days of gains post its results, it is the turn of solar maker Waaree Energies now, it would seem. India's largest module maker enjoyed a 4% plus day, two days before its results, The optimism in solar firms also stems from the fact that recently, firms have announced moves to clear out the pending pipeline of awarded tenders, starting with NTPC's reported proposal to buy power at a fixed rate from many of these.

Adani Green enjoyed an up day, as news came in of an additional 2033 MW awarded to it by SECI. That should certainly help with the ambitions goal of adding 5-6 GW this year and the next. The other large developer, Acme Solar will hope to have something to share soon on its own tender pipeline under execution, to keep the market excited about its prospects.