Green Stocks May 26: Stocks Mount Strong Recovery

As expected, consecutive days of rising markets brought our green energy pack right back into grow mode, with multiple stocks recording a strong recovery after a somewhat subdued Friday. We continue to believe that a sustained market recovery will see the green pack do better than most sectors, thanks to the tailwinds of strong results and prospects ahead.
Leading the pack today was Sterling and Wilson Renewable, the EPC major that has been building on its turnaround, but where promoter issues have been a drag. Perhaps a resolution is closer? Who knows.

Advertisment

Solar manufacturers Waaree Energies also enjoyed a mild recovery, after the strong reaction to US events for the stock on Friday. Shakti Pumps also seemed to break out from a range after being moved out of the ASM 2 framework (Long-term Additional Surveillance Measure (ASM) by the exchange. The two wind energy firms in the pack, Suzlon and Inox Wind also enjoyed a breezy day at the bourses, recording comfortable gains that take them closer to their previous highs.

What will be awaited now is to see if the market recovery sustains, because, besides the 25K barrier on the Nifty, there remain enough risks to make any predictions impossible for the short term. But the prospects for the Green pack remain strong if the market was to mount its own push back towards previous highs, as the Green pack has a lot of ground to cover to get back to levels we saw during the previous Nifty highs,. With almost all results in by this weekend for the pack and beyond, it will be a good time to look for price signals, as most stocks are trading at lower price-earning ratios after their results so far. In other words, there is still scope for further climbs if the markets support it.

List Of Green Stocks

Advertisment