Chakri Lokapriya, CIO and MD at TCG AMC, on Monday, said the renewable energy space may continue to do well in the near future. On the stock-specific front, the market expert liked Suzlon Energy Ltd and Sterling and Wilson Renewable Energy Ltd from the select segment.
Both Suzlon and SW Solar have done well and will continue to do well, given the level of orders that one can expect, Lokapriya told Business Today TV. SW Solar is more of an EPC (Engineering, procurement, and construction) player, implementing solar whereas Suzlon provides turbines, blades etc, he added.
Both the counters have seen a decent uptick amid the government's constant thrust to boost green energy space.
The Union Cabinet has recently approved a Viability Gap Funding (VGF) scheme for offshore wind energy projects with a total outlay of Rs 7,453 crore. The outlay also includes Rs 6,853 crore for installation and commissioning of 1 GW of offshore wind energy projects (500 MW each off the coast of Gujarat and Tamil Nadu) and a grant of Rs 600 crore for upgradation of two ports to meet logistics requirements for offshore wind energy projects.
In terms of share price movement, Suzlon jumped 5 per cent to hit a fresh one-year high of Rs 55.69. At this price, the renewable energy solutions provider has given multibagger returns by rallying 296.94 per cent in a year.
On the other hand, shares of SW Solar were last seen trading 0.48 per cent lower at Rs 744.40. Although, the multibagger counter has gained 152.38 per cent in the past one year.
Bourses BSE and NSE have put the securities of Suzlon Energy and SW Solar under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
Meanwhile, Indian equity benchmarks were down, dragged by banks, financials and metal stocks. Broader markets (small- and mid-cap shares) also saw cuts today.
14 out of the 16 sector gauges -- compiled by the NSE -- were trading in the red. Sub-indexes Nifty Bank, Nifty Financial Services and Nifty Metal were underperforming the NSE platform by falling as much as 0.86 per cent, 0.58 per cent and 1.12 per cent, respectively. However, Nifty FMCG and Nifty Consumer Durables were up 0.39 per cent and 0.24 per cent, each.
The overall market breadth was slightly negative as 1,656 shares were declining while 1,655 were advancing on BSE.
Foreign portfolio investors (FPIs) sold Indian shares worth Rs 1,790.19 crore on a net basis during the previous session while domestic institutional investors (DIIs) bought shares worth Rs 1,237.21 crore.