Green Stocks Sep 3: Amid Cautious Undertone, Green Stocks Gain

As markets continue to be pulled by different sentiments, green stocks had a broadly positive day today, save for specific stocks like Waaree Energies or Borosil Renewables, which traded lower. Not surprisingly, as the trend today seems to be for stocks that have suffered too much loss to recover somewhat, while those that gained on a weak narrative have continued to lose out. Borosil captures this sentiment perfectly, as the firm's financials have simply not justified its valuations for a significant period, and continue to be rich. 

A standout today was Acme Solar, which reached almost Rs 300 levels after a long time, a level it has consistently failed to sustain so far. A 50 MW FDRE tender win helped of course.

Halfway into the week, it continues to be a time to wait and watch in most cases. Stocks that rise too sharply in the first half of the day have invariably given up some of those gains by market close, making it a day trader's market for now.  The overhang of legal issues on key stocks like Tata Power (contract dispute) or even Waaree Energies (Patent dispute) now doesn't help. 

It will be some time before the impact of the widespread floods is properly understood, especially in the context of critical schemes like PM KUSUM or PM Suryaghar, but it is also equally obvious that the demand-supply equation for critical inputs like DCR modules will be significantly improved in due course. We believe short of a broad-based market recovery, a sustained surge is still not consistent with broader market mechanics here. The 'growth premium' for green stocks will stay, but as we have seen for large developers and now even solar manufacturers, it might face continuous whittling down unless growth numbers prove otherwise.

List of Green Stocks