July 1: Green Stocks Seek Direction

With Q1 finally behind the pack, it was obvious that, much like the market, green stocks would also be seeking direction going ahead. A key factor will be the India-US trade agreement, if it is announced, even an abridged version as indicated, in the next two weeks. One feels the whole market will let out a collective sigh of relief and move up 2-4% if that happens.

Otherwise, with the Nifty brushing with all-time highs, and the strong jump already seen in small and mid-caps, we might keep seeing sellers outweigh buyers this week at least. As firms provide summaries for Q1 performance, the picture might change.

One firm that clearly has high hopes for a strong Q1 backing it is KPI Green, the EPC player that has been clawing back lost ground over the past few sessions. While still off its highs, the stock seems to have the momentum to move much higher if results are on expected lines.
It will be a similar story for the developers in the pack, notably Adani Green and NTP Green, both of whom could be up for a significant jump of up to 10% if their Q1 summaries are strong.

Facing headwinds are the solar pump makers, Shakti Pumps and Oswal Pumps, as the market looks beyond their dependence on government contracts to the increasing competition in the segment. Margins are the difference between moderate and rich valuations, and Shakti Pumps has certainly felt the pressure these past couple of months. Management guidance and actual numbers for Q1 will indicate if the stock has been rerated to reflect a new reality or if the market will continue to expect outperformer status on the firm.

List of Green Stocks 

Company Name	Closing Price on July 1	Change %
Borosil Renewables Ltd	496.55	-6.13%
Waaree Renewable Technologies Ltd	996.70	-0.47%
Sterling and Wilson Renewable Energy Ltd	317.35	-0.80%
KPI Green Energy Ltd	528.55	+2.70%
Shakti Pumps (INDIA) LTD	956.45	+1.25%
Acme Solar	248.70	-0.20%
SUZLON ENERGY LTD	67.18	-0.80%
Adani Green Ltd	1,017.60	-0.78%
Inox Wind	173.40	-1.11%
Alpex Solar	1,102.00	-2.61%
Premier Energies	1,056.20	-0.46%
Waaree Energies	3,068.90	-2.25%
TATA Power	406.05	+0.15%
NTPC Green	107.85	+3.02%
Oswal Pump	672.00	-4.59%