Green Stocks May 8: Air Raid Warnings Drown Out Stock Recovery

In a now familiar pattern that is emerging, morning recoveries were quickly doused by fears of escalation or actual bad news on the bourses. Thus, we saw our green energy pack start the day with some small gains, before being hit with every rumor and news of escalation in the India-Pakistan situation. Most stocks have sought levels that seem to be more sustainable for them right now, which happen to be 3-7% below levels we saw yesterday. Thus, the 4% drops we saw in Adani Green, or the 3% plus in Sterling and Wilson Solar, or even the 2.5% one in Suzlon seemed to be taking them where they will find support from value buyers yet again.

The threat of escalation is certainly a short term threat for the green pack, as it is for the broader capital markets, but the broader market movements would still indicate that the market is counting on a short term escalation, not a situation that extends for months together, forget a quagmire of the kind Russia and Ukraine have created.

Whether it actually plays out like that or takes a completely different turn is impossible to tell thanks to the absenteeism of the US, and the limited influence of other countries like Russia or the predictable issue of figuring out what China will do. Sad to say, but we are in for some truly interesting times this May. May the weekend bring some clarity for all concerned.

List of Green Energy Stocks in India