INOX Wind to Torrent Power: Why are green energy stocks skyrocketing? Experts find NTPC Green Energy, RBI MPC connect

Stock Market Today: Share prices of Green Energy stocks as Inox Wind Ltd, Torrent Power Ltd and Adani Green Ltd among others gained up to 9% in the morning trades on Monday.

Inox Wind share price saw intraday highs of ₹209.80 which translated into gains of up to 8.5%. Torrent Power share price that rose to intraday highs of ₹1619.35, was up more than 7%. Adani Green Energy share price had scaled intraday highs of ₹1445, marking gains of 9%.

Catching up with NTPC Green Energy valuations

The Gains are being attributed to firm listing of NTPC Green Energy shares that made a debut and are commanding good valuations . NTPC Green Energy share price also gained up to 3% in morning trades on Monday as they touched intraday highs of ₹129.25.

Green stocks have come under the lens of investors as NTPC Green Energy shares are trading at a high PE( Price to earnings ratio) despite a strong debut on Dalal Street. This has improved the valuations of other green energy stocks, and discounted buying is taking place in this sector Mahesh M Ojha, AVP — Research at Hensex Securities

RBI MPC may provide some trigger

Connecting the green energy stock rise with the RBI MPC meeting, Seema Srivastava, Senior Equity Research Analyst at SMC Global Securities, said, “The Reserve Bank of India (RBI) and other regulators can create green lending guidelines. They should work towards providing incentives for solar investments. These might include preferential capital treatment for solar projects, lower-rate credit lines, and new risk-sharing tools. Tax incentives can boost the appeal of solar investments. Such incentives may include accelerated depreciation and income tax exemptions. Standardising power purchase agreements and simplifying regulatory processes can enhance investor confidence.”

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.