Green Stocks On Mahurat Trading Fly High

Even as the large caps seemed to tire today after a strong Friday, the green pack continued to show fresh legs as stocks gained across the board. Other than Tata Power. Acme Solar stood out with a 5% gain, while most other stocks made marginal to healthy gains. With markets closed tomorrow, today's gains may not be very significant in the context of how this month pans out, as we still believe there are enough risks to keep the markets on edge. What might matter more is that most of the recent green stock listings are now back to trading at or above their IPO price, which will give some breathing space to the many more lying in wait. 

And there are some big ones planning to float, right from Avaada Electro, planning a Rs 10,000 crore raise to many others due over the next two quarters. The worrying aspect we see is the beginning of rumblings from China, the key source market for inputs across the board in both solar and storage. After over a year of price drops, the Chinese are beginning to meet with a degree of success in arresting price drops in solar and in energy storage now. An effort that is too successful will hurt players in India, with many projects linked to projections of low-price imports from China, especially in BESS. 

With the US market increasingly blocked out for the Chinese, they wouldn't mind better margins from India, especially as they seek to full the US-sized hole in their own order books going ahead. Get set for a volatile ride in the coming months, despite the better-than-healthy state of order books and demand scenario for the best firms in the green pack.

List of Green Stocks