Green Stocks March 25: Stocks Swoon With Broader Market

With reasons as varied as a run-up that was too fast, too soon, to the Trump deadline on April 2 for tariffs, the markets, and our green energy packs took a breath today, correcting after the sharp run-up since last week.

Among the big losers was Solar Pump maker Shakti Pumps, besides developers NTPC Green, Adani Green and Acme Solar. As we have stressed earlier, recovering from the recent lows will be tougher for developers due to the continuing cloud of uncertainty over the fate of many allocated tenders where buyers have not been tied up. It is the same worry around EPCs like Sterling and Wilson Renewable or Waaree RTL, although Shakti Pumps, with its focus on the domestic agri segment, should be relatively better insulated.

The rise in Waaree Energies, India's largest module maker seems more in anticipation of strong Q4 numbers already, considering the healthy capacity addition numbers coming out from February and now, March as well. The two wind energy firms continued to struggle as well, with news of further consolidation in the sector, with the Siemens Gamesa India business in India set to be acquired by a clutch of investors for a reported $500 million. A strong investor will certainly go some way in adding a little more edge to the market which has of late been looking like a cozy competition between 3-4 players.

Investors would be well put to wait out till the month's end before jumping to any conclusions about an imminent recovery in prices or further corrections. The return of FII buying has been seen as a good indicator for future direction, but the sustainability of their return will be apparent only after events in the first week of April.