Green Stocks July 2: Investors Remain Skittish As Trade Deadline Nears

While hopes of a good Q1 show might yet be alive, it is clear that for now, markets are more preoccupied with the looming deadline of July 9 for an India-US trade agreement. While the data has no special significance other than being an arbitrary target date, the fact remains that even a small deal, as many hope for, will soothe nerves. Before the worrying starts again over the terms of the deal.

A deal seen as neutral, or even positive on the status quo, will be welcomed, while anything else could lead to a further drop. But for our green pack, we believe any significant correction will be an opportunity to buy. A milder than usual summer has tripped up quite a few sectors of the economy, but for the green pack, there is the silver lining of an all-time high share of generation, thanks to wind energy delivering well.

Today, stocks like KPI Green Energy and Waaree Energies bore the brunt of nervous investors who rushed to book profits after the run-up seen in these over the past two days. In others, investors preferred to wait and watch.

The market is gradually adjusting to favour larger firms over the smaller ones, which could mean more volatility in the green pack, where Tata Power, Adani Green, and perhaps NTPC Green remain the stocks with the size to weather the quick and unpredictable news flow. Waaree Energies is a good example of a stock that was up one day on the back of a large order win in the US, and down the next as the Big Beautiful Bill, with its not-so-beautiful prescription for renewable energy in the US, cleared the Senate vote.

Clearly, a time to sit on the sidelines and keep an eye on the updates from the trade front before taking any significant fresh calls.

List of Green Stocks