Green Stocks Nov 13- Most Stocks See Day Old Gains Slip Away

If you thought the gains yesterday marked a possible turning point, the scenario today might have disappointed you, as most green stocks gave up their gains. Interestingly, it was developers that managed to stand out today, even as both manufacturers and EPC firms continued to slip. 

The commentary from firms that have declared their Q2 results has been uniformly positive, which has unsurprisingly failed to enthuse investors enough. The reasons are many, ranging from confusion post news reports of the government planning to cancel over 42 GW of projects (Impact on developers and EPCs), or talk of manufacturing overcapacity (manufacturers), besides transmission delays that have tripped up timely commissioning in some cases.

Then there is the issue that plagued many firms in Q2, namely, curtailment. What has been ignored is that despite all this, most firms continue to stick to, and deliver on their guidance for this year, and add fresh projects that are likely to have a far higher chance of closure than projects stuck, where applicable. 

The problem of curtailment, while anticipated, has seen the usual failure to plan, making some out-of-the-box solutions an imperative before it starts to impact future capacity additions. Even the storage capacity being added is not enough to make an impact early enough.  

It is fascinating that most of the issues are problems of plenty, so to speak, a far cry from the shortage mindset that is the preferred mode for bureaucracy in India. With margins holding up for now, India's solar and broadly, renewable sector is certainly in a much better position than the global giants in China, whole have just emerged from another quarter of heavy losses.

List of Green Stocks