Green Stocks April 29: Green Stocks Continue In Twilight Zone

Red or green. For now, it is none of those two signals for green energy stocks, as most remain rangebound after a slight upward shift over the past week. That explains how Adani Green Energy, despite a fairly healthy set of numbers, corrected a little today, even as no stock made a decisive move in either direction. The broad perception of green stocks remains a matter of balance, with every positive indicator matched by a negative possibility. Combined finally with the uncertainty at the borders, a significant break upwards looks both difficult and unlikely for now.

Star performers like Shakti Pumps are still to declare results, even as new listings like Acme Solar and NTPC Green results for Q4 are also eagerly awaited. A steady, if not spectacular set of numbers from them will go a along way in reassuring markets about green stocks.

For now, between news of module shortages, or the longer-term risk of a module glut, the effect of a cut to the 100% ISTS exemption are all factors beginning to weigh on minds. The ISTS exemption is a classic situation where the industry has made a persuasive case for another extension of at least 6 months if not a year, due to the long delays on projects awarded as far back as 2022-23. But till a clear message comes from the government, many firms are bound to start worrying a little about the impact.

BESS projects, seen as a key bright spot are also yet to start delivering in terms of large procurement orders or faster PSAs, that will worry many market watchers. Thus, in a sector where growth is a given, there remain enough stress points to make many reconsider valuations carefully.