Green Stocks Jan 27: Green Stocks Succumb To Gravity In A Weak Market

stock market

On a day when the Nifty was down over 1%, green energy stocks, almost all of which trade at multiples higher than the Nifty index stocks, suffered today. Borosil Renewables, Shakti Pumps, SWREL, and KPI Green all tested the power circuit limits. Others with higher circuit limits suffered even more, as Acme Solar sank over 9%, Premier Energies over 6%, and Waaree Energies over 2%. The 2% would have been a relief, as group EPC firm Waaree Renewable Technologies continued to give up more gains from the past year to a new low of Rs 890 odd. The Wind energy firms, that were being toasted for record order books and O&M contracts only a couple of months ago, find themselves in the doghouse again, with processes down over 30% from the recent highs.

The current market correction has gone well beyond the control of individual firms now, as India faces pressure from both FPI exits and tiring domestic buyers. It will take more than just good results for now to reverse the tide in many cases, with the upcoming union budget on Sunday the first opportunity to see if the government keeps an eye on the signals from the market too.