Green Stocks Aug 4- Shakti Pumps Punished For Ordinary Q1

As the markets rebounded after 5 weeks of losses, the green pack looked ahead to a strong day too, but was dragged down by Shakti Pumps. The leading solar pumps firm suffered a strong reaction to less-than-stellar results, announced after market hours on Friday. The reaction simply underlined our consistent message that hard news would decide price movements more strongly for our pack, and not sentiment or narrative. Shakti Pumps has probably been hit by the early monsoon, slowing down some installations perhaps, but the firm's fund-raising spree is also worrying for many, as it has consistently diluted equity over raising debt, even as its own debtors' profile or delays thereon worry most. 

Other stocks to miss out on what should have been a strong day were Tata Power, which also saw the consequences of good results meeting even higher expectations somewhat. 

JSW Energy, on the other hand, made the most of a strong Q1, even as KPI Green continued its march to higher prices. The Gujarat-based firm's results could prove to be an acid test for the current rally in its prices, as it has struggled hard to break out of the Rs 500-550 zone in recent months. 

Overall, one wouldn't read too much into today's rally, as the odds of a major news moment, be it a rate cut by the RBI this month, or even an announcement of the increasingly elusive Indo-US trade deal, are not looking too high. A consensus seems to be building among large investors that business as usual has run its course, and without key large-scale reforms, a decisive move in India is unlikely. Has that message reached India's ever-hopeful retail investors yet? One hopes it does soon, or they could be left holding some pricey stocks no one else is interested in very soon

List of Green Stocks