Green Stocks Nov 12- First Signs Of Revival For Stocks

For most of the pure-play green stocks, it was a good day as shares gained ground on the back of positive cues globally and domestically. While the global markets heaved a sigh of relief at an end to the US shutdown, in India, the improving prospects of a trade deal with the US helped. Of course, most stocks have a long path to travel again before they get anywhere close to their highs, recent or all-time.  

Weak Q2 electricity demand, which has seen the larger developers and generators struggle to grow over last year, has been replaced with some optimism about prospects going forward. Chances of a low-interest regime continuing, and perhaps even moderation in the future, will certainly have helped developers who borrow significantly. The slowing pace of tenders is expected to shift to a normal trajectory from next month, after some more clarity on clearing out the pipeline of unsold projects that have been allotted. These remain mostly pure play solar and some hybrid projects, and their last remaining attraction, of 100% ISTS exemption and avoiding the ALCM regime, is fast nearing its end. Expect to see at least 25 GW of cancellations by the year-end, replaced by projects on a faster execution timeline, and loaded with a higher share if storage-based projects.

It is becoming more than clear that energy storage costs and execution will have a critical role to play in future projects in the renewable space, and short of a major disruption, many firms will soon be evaluated on the share of storage in their portfolios, present and upcoming. 

With another IPO, this time from Emmvee Photovoltaic, scheduled to close tomorrow, the response to this otherwise quality firm will be interesting to track, and we will certainly include it in the green pack as well when it lists.

List of Green Stocks