Green Stocks March 19: Stocks Lead Market Gains

After the somewhat tepid response to a strong market rebound yesterday when most green stocks trailed market gains, it was business as usual for green energy stocks today. Most of the stocks beat the mid-cap or the small-cap indices when it comes to gains today, with over 3% gains seen across the board for many stocks.

The strong rebound portends a sharp recovery if the broader market recovery holds up. Keep in mind that despite the good start this week, most of the green energy stocks are well off their 52-week highs, some by almost 60%. So strong was the recovery today that even Gensol managed to reverse its steep slide, rising almost 5% today.

EPC stocks, perhaps the most beaten down in the pack, led today with over 4% gains for KPI Green, Sterling and Wilson Renewable, and of course, Shakti Pumps. Initial feedback on the soon-to-end Q4 for many of these firms indicates a satisfactory quarter, with most looking set to meet guidance or projections for the Financial year. That will be good news indeed for investors burnt by the recent slum, as a further 5-7% recovery seems possible in March itself. Helping the recovery with a pish is the return of, and by extension, the pause on selling by FIIs. By returning as buyers on the back of a series of optimistic projections for India's green ambitions, the markets have definitely benefited.