Green Stocks April 22: In A rising Market, Green Stocks Slip Up

Even as markets surprised with a positive closing, especially the small cap and mid cap indices, Green stocks in our pack struggled to hold on to gains. The exceptions of course were the two solar and cell manufacturers, Premier Energies and Waaree Energies, The latter especially seemed to have real momentum behind it, as news of US tariffs on imports from South East Asia opens up further vistas for the firm. Premier Energies will probably correct soon as people realise the stronger domestic focus there.

Besides these two, while some like Acme Solar continued to do well, many simply slipped up again, showing how important news flow is going to be from here on at these prices. PEs of 40 plus that were passed across the board are no longer so, and further corrections will loom if Q4 results for instance, disappoint. Keep in mind that the Gensol fracas has also soured the pitch for a few investors as they relook exposure to the sector.

Strong stories like those at Tata Power, NTPC Green, Waaree, Shakti Pumps or even Borosil Renewables will be taken up more seriously over smaller firms that could struggle in a disruption.