Green Stocks Aug 29- Stocks Push back Against The Tide

As the last trading day of August was rung in, the markets closed the day with a month-on-month loss, attributable almost completely to the US moving against India with secondary tariffs. That translated into a poor month for green stocks as well, even as we believe many are back into what we call the value zone, where a sharp recovery would be on the cards if, say, tariffs were to be cancelled, or perhaps an interest rate cut as some expect. Or, most importantly, a well thought-through GST rationalisation that has been promised. But all those events look hazy and in the future, for now, making it very difficult for the markets to form a direction up. 

Q1 results for most stocks outside the green pack have been nothing to write home about, making it doubly difficult to suss out future direction here. 

The standout for August has no doubt been Waaree Energies, volatile as always, sensitive to every news from the US, but riding it all out to end with gains for the month, which frankly would have surprised many. Shakti Pumps on the other hand, seems stuck in a rut, as even news of selling out 10,000 solar pumps in less than two hours failed to enthuse investors today. 

What will September bring? More of the same or a decisive move? For the green pack at least, decisive moves on the downside seem limited, but any upward moves will need to reckon with some selling pressure from investors who might have had enough of market volatility for now. Developers will probably find it toughest to ride out of this trough, even as EPC firms and solar manufacturers will be more resilient at these valuations. Manufacturers, perhaps not as much. News will be awaited from the two wind energy firms in our pack, as both Suzlon and Inox Green, despite broker recommendations to the contrary, seem well valued to us for now.

List of Green Stocks