Green Stocks Jan 05- Sustained Pressure Continues For Green Stocks

Stocks being moved to the F&O segment are usually seen as a positive, as it improves liquidity and visibility. But even this move worked otherwise for leading green stocks Waaree Energies and Premier Energies, as both the solar manufacturing majors suffered significant falls after inclusion. The only stock to have managed a green closing today, KPI Green Energy did it on the back of a key energy storage win in its home state, Gujarat.  

While on the storage front, a stock that continues to be an interesting proxy for the sector remains Pace Digitek, the Bengaluru-based firm that has made a significant shift from its telecom-focused offerings to utility storage in the past year. New regulations on 20% domestic content should work for the firm, which has been pushing hard to withstand competition from fully built imports from China by containerising locally and more.  

Beyond that, the larger-than-average falls seen across most stocks in the green pack continue to point to underlying weaknesses that the industry has not been able to overcome, especially on the narrative. This has become especially important with the jump in listed firms in the green energy space. Rarely has one seen such a disconnect between the actions and pronouncements of firms in a space and the market reaction to the same. It remains to be seen how Q3 results, as they start trickling in a week from now, make a difference to this challenge for the firms.

The other big trigger will, of course, be the union budget in early February, which could either reassure investors of the government's resolve to continue backing the sector, or underline just why firms with a heavy government overhang tend to suffer in valuations eventually.

List of Green Stocks