Green Stocks Jan 14: The Rollercoaster Continues

On a day marked by wild swings, many green stocks mounted a strong recovery, led by Adani Green Energy, which roared back after days of hammering with a 13% plus gain in the day. Adani's price volatility may not be comparable to the others, as the group is still trying to untangle itself from the last series of accusations from the US. All eyes today were on Waaree Renewable Technologies, which sprang back to recover almost all its 20% losses from yesterday. NTPC Green also jumped almost 10% to recover losses suffered earlier this week. Suzlon, Borosil Renewables also rose by 5% to make it a broadly successful day for the Green pack, even as a few like Sterling and Wilson Renewables struggled to rise above it all. KPI Green continued its somewhat mystifying slide, despite the two bonus issues and stock split in the past 12 months.

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Today's gains might have brought some relief for investors who have seen their gains evaporate in many green stocks over the past few months, other than those who got into the cohort early enough in 2024. Valuations remain expensive by conservative and traditional metrics, but they are finally reaching a level where a strong quarter or two can justify them. That puts the onus of price recovery from here on solely on the performance of these firms' dish put in the coming quarterly results, with little room for misses. Expect volatility to continue, as external actors like the Trump presidency in the US, rising oil prices, and more uncertainty in China's stance on high technology machinery imports all take a toll on market sentiment.