Green Stocks Oct 1- Dead Cat Bounce?

The first day of the new month saw a smart recovery in the markets, but to call the status quo on interest rates by the RBI as a trigger would be overstating it. The sharp rebound today that built up through the day would seem to be more of a correction of the sharp push down on stocks all of last week and more.  The stability on interest rates seems to have galvanised green stocks, with most of the larger firms recording smart gains today. These come at a time when project execution, and consequently, debt fund raising, has picked up speed in the sector.  The sector, especially developers and EPCs, remains sensitive to interest rate changes, and for many, today's call will help move ahead on plans that might have been held back only to be sure of the direction of rates. For now, it is safe to say that the next six months will see little to no pressure of any rate increases. 

Key stocks that lead the sector, be it Shakti Pumps, Waaree Energies trailed the broader green pack surprisingly, even as large developers like Adani Green and Acme Solar shot up. 

With a holiday tomorrow, the market has a shortened week in which to make up its mind on the possibilities in October, and we believe there are still gains to be made, considering the 'positive' news on the policy front for manufacturers for instance, on a 30% anti-dumping duty on cell imports. Those who are close to or already self-sufficient in cell making will benefit, although the impact on EPCs and developers will play out more slowly. 
Overall, not the kind of news-backed recovery one would bet on yet, although we stick to out conviction that the green pack is close to, or in value buying territory after the correction last week, and expected results for the September ending quarter

List of Green Stocks