Green Stocks Nov 26- Stocks Fail To Ride The Recovery

On a good day for the broader markets after a while, our green pack made gains, but not uniformly. Borosil Renewables gained the most, while many actually missed out, as you can see in the accompanying table. Coming on a day when we have also highlighted the lacklustre performance of 5/6 recent IPOs from the sector, expectations and rewards are clearly seeing a reset of sorts, and it will take more than just a trade deal, one feels, to change the narrative. 

Market news indicates that most firms remain comfortable in terms of project execution, with only the bids being made at recent BESS tenders beginning to make a few players anxious, who fear that these are unrealistic and will lead to stranded projects. Countering them is a section of the market that says these bids are paying an entry tax for many firms, and tightness in the market can only lead to positive policy measures later, especially in terms of evolving into a market for a battery-as-a-service model that is so prevalent in other markets globally. So, pain before any gain, the tried and tested motto of the Indian markets when it comes to dealing with the government. Let's see how it actually plays out. 

Perhaps what will move the sentiment meter like nothing else would be a sharper, clearer uptick in power demand, something we have barely seen this financial year. That rising graph is what will decide a string of planning and proposals for the sector, including the pace of BESS additions as well. The earliest we will know about the picture for November is early next week, so not too far away. A strong revival of over 5% could mean good things for a lot of players, while anaemic growth below 4% would make many question the figures of GDP growth itself, one feels.

List of Green Stocks