Green Stocks June 3- Stocks Struggle As Market Sneezes

Green energy stocks failed to buck the general downtrend in the markets, as most stocks suffered losses. While the off exception like Waaree RTL managed to make some gains on the back of a large order announcement, parent firm Waaree Energies gave up more of its gains it had notched after a large order win in the US. Interestingly, Waaree RTL's gains seem more likely to hold at this stage considering the project it has just won is set to be delivered within the financial year, while the parent firm's order was to be delivered only by 2027.

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Other stocks like KPI Green and Acme Solar, after showing some strength in the past week, also retreated today, as the markets continued to make sense out of the pace of news flow from around the world.

With China's restrictions on certain exports already threatening to upend the plans of automakers in India who need the imported magnets with rare earths from that country, the fate of solar projects and manufacturing has also come under scrutiny. The government has already indicated it is willing to extend deadlines for the PLI scheme, but what the industry probably could do with is alternatives to China-centric supplies.

Could these issues rise further in the storage domain as well? After all, storage is one area where dependence on China is almost absolute for the basic cells. One would hope not, considering how almost all green energy sectors in China have been set up with a scale to supply beyond its borders.

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A sharp restrictive approach would hurt domestic firms equally hard, besides denting the country's image as a reliable supplier. Or its increasingly acknowledged role and contribution to fighting global climate change with its low-cost supplies in the green energy domain. With not even the mid-week stage reached yet, one gets the feeling we haven't seen the end of sudden market drops yet, and investors would be well advised to keep some dry powder for better opportunities anytime in the future soon.