Green Stocks July 29-  Stocks Make Most Of A Pullback Rally

After 3 consecutive sessions of drops, the green pack roared back today at the first sign of a pullback. While it is too early to call this a recovery, it certainly qualifies as a strong pullback. EPC firms, beaten down over the past weeks, all recovered somewhat, although they remain nowhere close to even their process from a week or more back. Developers like Adani Green, NTPC Green had contrasting fortunes, with the latter clearly not impressing many with its results.  

The two wind energy manufacturers in our list, Inox Wind and Suzlon, also mounted some recoveries, even as Solar manufacturer Waaree Energies did even better after a strong set of Q1 numbers. Premier energies didn't quite catch the same momentum, as it struggled to stay in positive territory. Acme Solar, which had shot up over 10% after its own results late last week, took a break today as it dropped over 2%. Importantly for the developer, the stock price is finally at or around its IPO price, after a long period of trading below the price. 

Looking ahead, the risk of a sudden correction remains on the table, seeing how the market has behaved until now, With some sort of clarity that the August 1 deadline is out of the frame for a trade deal with the US, the market will wait and watch the pronouncements of the mercurial Donald Trump on possible consequences for India's trade with the US. Will there be a deadline extension, or will higher tariff barriers come up again either way, the risks remain high. 

Looking at Q1 results, it is obvious that earlier than expected monsoons have slowed down execution in Q1 for many firms, and to that extent, after the slow Q2 that is expected, action will pick up only in Q3. That might disappoint short-term traders hoping to make a quick buck from better-than-expected results anytime soon. Other challenges are also beginning to loom on the horizon, notably a rising cost of energy storage by year-end that could add a brake to many plans for storage-linked renewable projects.

List of Green Stocks