Green Stocks September 1- Stocks Light Up, But Will It Last?

It was a roaring start to the month, as the markets, and with that, most of the green pack shot up. While multiple factors have been mentioned to justify the rise, mainly the better-than-expected GDP numbers, the coming GST changes, and a probable rate cut, even the underlying note should be to remain cautious, in our view. 

Risks, or more precisely uncertainty, remain high, especially when we consider that Q2 numbers are unlikely to be too strong, thanks to the disruptive monsoons so far. 

But of course, there are strong firms in the pack that offer good value as we mentioned on Friday, and investors have duly piled back into those today. Prominent among them is Premier Energies, which, thanks to its low exposure to the US market, was in favour today, rising over 4%. EPC firms, also, be it solar or wind, enjoyed their day out with strong gains in general, again as predicted, while the large developers had limited upside today.

What will worry many is the drop in price of newly listed Vikram Solar, which went below its IPO price today. Not a good sign, and definitely a sign of growing sophistication about pricing and prospects among investors. Vikram Solar will need to pull out a truly strong Q2 set of numbers to make a comeback to justify the huge oversubscription it had attracted. 

Waaree Energies, after seemingly defying skeptics last week, slumped hard today, falling over 5%, as the shadow of US investigations on Indian solar exports finally fell on the largest exporter from India. Even though it has bagged order wins through its US subsidiary, the market clearly believes that it could face trouble with the origin of input materials like cells, yet. 

The big question now? Will this rally last? We wouldn't bet on it at this stage, and it might be time to book profits where you can for many investors, and learn from the stocks you like and how they behaved when the markets swooned. Pick those when you can if they stood up well; otherwise, wait out this rally.

List of Green Stocks