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At a time when the financial markets are having a bloodbath almost every day due to the ongoing United States-Israel-Iran war in West Asia, there are some stocks gaining from the energy crisis emanating from the conflict.
The stocks of renewable energy companies on Thursday posted a strong buy rally as the oil and gas crisis in India deepened. While the broader markets traded in red, the stocks of companies like NTPC Green Energy, KPI Green Energy and Vikram Solar traded at a premium of up to 19 percent on Thursday.
Only a year-old stock of NTPC Green jumped over 19 percent on the bourses. While it opened marginally lower at Rs 86.60, the stock surged to Rs 103.25. Its previous close was at Rs 86.70 apiece. The stock ended the day with a rise of over 12 percent.
Another stock which gained from the oil crisis was the Gujarat-based solar company KPI Green Energy, which climbed 18 percent on Thursday. While it opened flat at Rs 363.65, the stock rose to Rs 432.20 apiece before shedding some gains. The stock closed over 8 percent higher on Thursday.
In contrast, benchmark indices Sensex and Nifty closed about 1 percent lower.
The war-induced oil crisis is prompting investors to go for renewable energy stocks as such companies are considered to benefit from issues arising on the front of conventional energy.
Other stocks that showed strong gains included NSE-listed Solex Energy, which surged over 12 percent after opening higher on the bourses.
Stocks of companies like Saatvik Green Energy (ended 4.26 percent higher), Servotech Renewable Power System (ended 4.4 percent higher) and Indian Renewable Energy Development Agency (ended 1.8 percent higher) also gained during Thursday’s trade.
According to experts, as long as there are no clear signs of de-escalation in West Asia and the energy crisis easing, renewable energy stocks are bound to gain. Any disruptions at the conventional fuel front strengthen the economic case for going green.
