Green Stocks March 10: Monday Blues For Green Stocks

After the somewhat hesitant recovery of sorts we saw in some stocks last week, it was back to the slide again, as green energy stocks followed market directions to a T. From Gensol, (Down 5%)to KPI Green (Down over 4%) to Premier Energies and Waaree Energies, all suffered significant losses as the market mood remained downbeat. Shakti Pump, a strong contender for resilience now, stood out as it finished the day with not too much of a loss, after flirting with gains for most of the day. Both the wind energy firms, Inox Wind and Suzlon, continued to suffer from a possible cloudiness on their long term prospects, despite solid order books and execution plans.

The big disruption headed the industry's way is undoubtedly dropping energy storage costs, which, of combined with low solar costs, are making a strong case for just solar plus storage projects. Where Hybrid, or solar plus wind projects backed with storage, was considered inevitable to meet the demand for longer hours of green energy. Good news for EPC players like KPI green energy, Waaree RTL or even Sterling and Wilson Renewables, but clearly the market is not in the mood to listen to long term forecasts right now.