Green Stocks Aug 19- Surge Continues As Optimism Sustains

As markets continued to be buoyed by expectations of wide-ranging benefits from GST rationalisation, green stocks made the most of the rise as well today. Underpinning the current gains seems to be a rising, though apparently unfounded hope that the extra US tariffs may be deferred post the seemingly satisfactory, if inconclusive talks between Trump and Putin. However, risks continue to exist that today's discussions with EU leaders may not go to plan, and we might yet see an escalation of both the battle as well as actions on India. 

With key US representatives virtually throwing up their hands in surrender on the issue of China vis-à-vis India, investors need to be braced for further bad news as well here.  The government's announcement of GST rationalisation also seems to have been done to not just tackle a festering issue, but also to do it at a time when it was most needed from an optics perspective. Considering the process for GST revisions that involves a consensus in the GST council made up of state finance ministers, one has to consider the risk of a delay there as well. 

What would actually have cheered markets is possibly the continued easing of tensions between India and China, as the two countries seek their own ways to counter US pressure on trade. Chinese willingness to be more sympathetic to Indian needs on issues like rare earth magnets and more is a big positive in that context, as these have uses well beyond just the EV sector, including wind energy as well.  Here's hoping that actual Chinese action will happen before the GST decisions are finally announced. 

Green stocks, meanwhile, continued their good run, with most stocks on the main board gaining today. While not the subject of our pack here, the green stocks on the SME exchanges mostly fell, perhaps a much-needed correction for some of them that had run ahead of fundamentals. Brace up, we are just into day 2 of what promises to be a very interesting week for stocks!

List Of Green Stocks