Green Stocks Dec 10- Rally Falters, As Market Reverts To Weakness

As expected, the rally seen this week has failed to sustain, and with it, the stocks in the green pack, which had mounted an effort at recovering lost ground. While overall weakness and the depreciation of the rupee, for instance, have hurt everyone, the industry remains hopeful that demand will stay sticky, with possibly a marginal impact on margins.

For the stocks that did have a day with some gains today, the gains were hardly enough to celebrate, as there remains a long road to climb for most of these firms.

The chances that December will actually end with gains seem to be receding for now, unless the US-India trade deal is sprung on us as a surprise. Because, quite frankly, while a comprehensive trade deal seems ruled out, the best to hope for is a starter pack with points of agreement, backed by the withdrawal of punitive tariffs and Indian exports for now. Now into its fourth month, the additional tariffs are certainly biting, despite efforts to find markets elsewhere.

However, it has to be said that the urgency the tariffs have added tothe efforts to streamline operations and seek other markets will probably stand the industry in good stead even if the tariff levels are normalised later. A country spoilt with a large domestic market for almost everything has usually needed a crisis to make major changes, and one hopes the globally integrated renewable sector will not wait for it to come to that.

List of Green Stocks