Green Stocks Jan 21: Is The Bottom Close? It Better Be

While the market continued to slip, the early signs of a bottom are beginning to appear as well. Be it cynical traders who finally see 'value' in India, or the possibly underrated impact of an Indo-EU trade deal, we would certainly be willing to believe a bottom is close enough. The green pack has much to look forward to from the budget, especially when it comes to incentives and outlays for key initiatives like PM KUSUM, PM Suryaghar, or even more policy support for energy storage in the form of direct subsidies, perhaps for smaller sizes.  

Suffice to say, the fact that some of the more recent tender winners in the storage could already be staring at significant losses if the uptrend in prices continues, might just convince the government to step in with something beyond the VGF support we have seen so far. Vikram Solar's Q3 results were on expected lines, especially the sequential stagnation, and the pressure on listed players to hike prices is apparently immense, as input costs have started climbing.

We certainly hope the increases will be way less than the projected 25% some analysts have claimed, as demand for renewable energy has been seen to be extremely elastic (read-price sensitive) at utility scale, for instance. Proposed power sector reforms mean hikes are not too far away for electricity in many parts of the country, and that could be the single most convincing factor for many to go for solar.

List of Green Stocks