Green Stocks August 25- Green Pack Underperforms

It was a significant day of underperformance, as green stocks trailed key indices. In our pack, other than Acme Solar, most stocks struggled to make an impact, losing ground further. Not the best start to a week that has just started on the news cycle that has just started for the markets. Be it the additional US tariffs, looking almost certain to remain unmoved by August 27 when they kick off, or the counter to that. domestic news on the reforms front. 

News of heavy green power curtailment in Rajasthan this month would also not please punters when it comes to the large green energy developers in our pack. 

Many would wish that the government move faster between announcements of reforms and action, as there is a risk of an impact in Q2 on order flow at least as many customers could decide to sit on the fence. But yes, the government's intent on reforms seems back after a long period of business as usual. One of the few welcome outcomes of the US trade war. 

Complexity continues to rise in the green energy sector with the onset of storage-based projects in a big way, and expect significant realignments of purchase decisions due to the same as well. For now, all eyes will be on Vikram Solar's debut this week, after closing the IPO with a successful oversubscription. Most people seem to have settled on a listing premium of between 3-8% for the solar manufacturer. 

For now, much like ice cream makers during an extended winter, solar stocks seem to be suffering the brunt of a copious monsoon that has curtailed both power demand and sentiments.

List of Green Stocks