Green Stocks Sep 16- A Breakout On the Cards?

Although the green pack had none of the wild movements seen earlier last week, indications are pointing towards a possible breakout, along with the rest of the markets. Optimism about a resolution to US tariffs is just one part of it, while the other is hopes of a rate cut and trust in the resilience of green energy growth in India.

It's been interesting to see large developers play catch-up with the manufacturers over this week so far, and that's a clear sign that a broader move is underway. Without any major moves, most of these stocks have gained enough to get close to their month ago levels, and prepare for a possible upmove that is stronger from here on. Hopes are definitely there for a good Q2 show, despite the risks of disappointments in some cases due to the monsoon's impact.

The news flow on fresh orders remains strong, and as we said, a questionable call to seek an ALMM structure for Wafers as well might have inadvertently provided the market and developers the impetus to complete more work before the 2028 deadline. The consensus seems to be clear. A capacity addition of 35 plus GW in solar and 5 plus GW in wind is no longer a matter of hope, but a real possibility. Anything less than that, in fact, would be considered a disappointing outcome. At those numbers, at least two out of the three key stakeholders, namely, developers and EPC firms, will be very happy, although manufacturers might soon need to start worrying about a looming overcapacity situation by this time next year. Until then, they will surely make hay and shine as well.

List of Green Stocks