Green Stocks Jan 29- Green Pack Slumps As Small Caps Miss Rally

It was the large caps in our green pack, basically Adani Green and Tata Power that ended in the green as most other stocks dived along with the broader small cap and mid-cap space. All eyes are obviously on the budget now, making what happens tomorrow irrelevant really, other than some punters placing positions in anticipation of events on Sunday. With the markets also open on the day, enough has been prophesised and hoped for, for us to add to it. 

Our understanding is the industry simply wants continuity, less interference in micro managing events, and at a broader level,  a sustained focus on transmission infrastructure upgrades.We believe it is too early to expect the government to make any major moves on say, subsidies on the energy storage front. Investors should also remember that when it comes to green energy, the government has done most of its work outside the budget, so to that extent, it has been fairly responsive to changing needs and situations. 

The key issue is to set a process for higher investment into R&D and to encourage partnerships with firms in say, Europe, Australia and the US so that alternatives to China dominated supply chains can be created. Outside of that, broader market issues like LTCG etc will cast a long shadow on all stocks come Sunday, and we wait to see just what the government has thought about it.

List of Green Stocks