Green Stocks August 13- Stocks Fail To Ride Market Upmove

It was one of those rare days when the green pack failed to move with the market, or even beat it as it does more often than not. The start of a fresh investigation in the US against solar cell imports from India, among other countries, was one clear reason that weighed down on solar manufacturers Waaree Energies and Premier Energies. 

The downbeat sentiment seemed to pull down most other stocks as well, other than Shakti Pumps, which bagged a significant order to reassure analysts beginning to worry about its shrinking order book. 

EPC firms also had a down day, with most reacting down, or failing to make gains matching the broader markets. The same story was repeated with green developers, with even Acme Solar giving up gains as the market reached closing time. It was interesting that despite the announcement of key order wins, both Inox Wind and Suzlon also slumped, indicating just how worried investors are about the near-term prognosis.

The news of SECI cancelling its offshore wind tenders wouldn't have helped, even though it should not have made any impact on the wind energy stocks, which have a 100% onshore footprint for now. 

As we said, no discernible message can be read Into stock movements for now, with the risk of a further downside dominating over upside chances, mainly owing to the lack of progress on the US-India trade deal and risk of other pincer actions on India from the US and EU, as they seek to shift their inability to rein in Russia on buyers of Russian oil like India.

The hypocrisy might be breathtaking when comparing the treatment of India vis-à-vis China, but at one level, optimists should welcome it as a much-needed reality check. Even better would be for India to use this period to clear up the many obstacles holding back Indian entrepreneurs and industry, but perhaps that is hoping for too much, considering the quasi-kleptocracy forming in front of our eyes here.

India desperately needs to reverse its big-is-better approach to industrial incentives, in favour of a focus on easing the actual running of business by simplifying rules and easing access for small businesses to authority, finance, and approvals. We risk missing a golden opportunity to reform now if the right moves are not made.

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