Green Stocks Feb 24: An End To Pain In Sight?

It might sound like a contrarian perspective, but we believe that the end to market pain is in sight. And with that, the steep correction in our green energy pack as well. This is a matter of valuations, the impact (or non-impact) of anticipated events like Trump tariffs, and a change in market dynamics in the sector. But mostly linked to a credible belief that the Nifty will not crash through the 22500 barrier on its way down, and might be searching for a bottom after correcting almost 15% from its peaks last year. If anything, the possibility of positive triggers seems higher than ever now, be it some sort of end to the Russia-Ukraine conflict, a Trump administration focusing on domestic politics and providing much-needed relief to the world, or receding fears of significant supply disruption for the solar supply chain. For India at least, the last one is significant as some more cell manufacturing plants hit their straps, easing a tight market situation somewhat.

All that of course is in the near future. Today, it was the irresistible force of a market drag that pulled down almost all green energy stocks, with notable losses for NTPC Green that was down almost 7%, Sterling and Wilson Solar that lost the most among EPCs, or the losses suffered by Premier Energies that took its stock price to Rs 940. A massive correction? Not when you compare it to its IPO price of Rs 450, issued In August last year.

NTPC Green of course has gone below its IPO price, which will send shivers of worry down many other solar developers that hoped to tap the markets soon.