Green Stocks Aug 26- Big Is Beautiful, Discovers The Green Pack

In what has to be the most predictable market slide ever, Indian markets duly slipped as the US notified its next raft of tariffs on Indian exports to the US. Set to start from August 27, the US move continues to underscore the ceding of any tool other than crude bullying by the erstwhile superpower, which has increasingly behaved like a petulant child that wants it all.

While the abject surrender by the EU has no doubt encouraged the US moves, it remains to be seen how the tariffs on India play out, although the risk of damage it will do in the short to medium term remains on the higher side. A GDP hit of 0.50 or higher is certainly possible, thanks to the tariffs that effectively seek to shut out many Indian goods from the US market, besides second-order effects that will become more apparent with time in other domains if the situation festers. Arguing that it will be counterproductive to the US eventually seems like a mug's game presently, with the incumbent unable to look beyond a week's headlines and the evening news for results. 

For our green pack, it was a matter of slipping when the market slid, and most stocks have duly done that. The notable standouts have been the larger domestic players in the manufacturing space, which seem set to benefit from measures the government will take to soften the blow by way of GST reforms and other measures. NTPC Green, Premier Energies, and Waaree Energies all might have gained, but today's gains count for little in a period of such high uncertainty.  It is also a little ironic that these firms should hold out better when you consider how the government has cited small businesses, farmers, and whatnot as the reason to stand up to US pressure. The least the government should do is to seek out real reforms in the way business is forced to operate in the country, and break the shackles of mafia-like cartels that have crept up across sectors in what has increasingly become a 'middle man' economy. 

That hope still flies is evident from the Vikram Solar IPO, which attracted strong interest, and the firm finally listed today with a significant premium, although it closed well within our predicted range of 3-8% for the day. Clearly a stock to watch, and one we have added to the green pack immediately as well.

List of Green Stocks