Green Stocks Aug 5: Trump Factor Continues To Weigh Down Stocks

It was yet another day that might as well have been considered a write-off for green stocks. Almost all stocks suffered losses, with even KPI Green Energy correcting after its run-up this week. A solid set of results, mostly meeting estimates, was clearly not enough to keep punters in good humour. Large caps like Tata Power and JSW Energy also slipped, as selling pressure continued in the wake of uncertainty over US trade. 

The news of an uptick in power demand in July is a big positive, and if initial trends in August hold up, it will augur well for the developer part of our green pack. Otherwise, it was a rougher day than usual for Adani Green, NTPC Green, and Acme Solar, all of whom have given up the slim gains they made till last week. The markets have apparently had 5 successive weeks of drops, and it remains to be seen if we will close week six with another drop, despite what many are saying about the markets being close to bottoms.

The week is still in its first half, and as we have been saying, it remains a period to be very circumspect about entering into any new stock, unless you have a medium to long-term view. Because in the case of the latter, there is little doubt that the sector outlook remains positive. 

Risks, if any, are as you might expect in any such sector, which is the risk of overcapacity on the manufacturing side, or even price disruptions on energy storage that could impact projects post 2027. But with enough experience over the years, one would expect firms in our green stock to weather any challenge better than most and deliver when it matters to their investors. 

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