Green Stocks Feb 7: Drift Is the Theme For Green Stocks On An Eventful Day

With the RBI finally pushing a rate cut through after almost 5 years, the stock markets disappointed many investors by staying range-bound with a downward bias. For green stocks as well, the news of lower rates should augur well for the long term, especially considering the early signs of price pressures from the ALCM or DCR cell mandate on tender bids. It is something that many developers believe will definitely lead to a slight upward repricing by as early as March, tempered hopefully by dropping storage costs. Thus, it was EPC player KPI Green that continued its recovery to a third day with a 5% gain post its outstanding results, even as most other stocks drifted in a range. Most are down 30-50% from their 52-week highs, indicating just how tough the period since August broadly has been for investors in these stocks.

The latest rate cut, as and when it is finally cheered by the markets will have a positive impact on most green stocks as well, as financing costs remain a critical metric for most firms. To that extent, the alignment of green stocks with the broader markets seems complete now, even as most continue to enjoy higher valuations than most peers in other sectors.