Renewable energy stocks extended their gains for a third straight session on Tuesday, with Suzlon Energy Ltd. and Premier Energies Ltd. continuing their recovery after last week's earnings-led correction.
Shares of Premier Energies rose as much as 3.26% to an intraday high of Rs 1,054, while Suzlon Energy gained up to 2.18% to Rs 49.15, according to NSE data. The advances follow Monday's rally, when both stocks ended higher alongside Waaree Energies as buying interest returned to the renewable energy space.
The sector had come under pressure after June-quarter earnings, particularly from Waaree Energies, where investors focused on margin compression caused by higher raw material costs despite robust growth in revenue and profit. The weak sentiment spilled over to peers, triggering broad-based profit booking across solar and renewable energy names.
However, the recent rebound suggests investors are once again focusing on the sector's long-term growth drivers rather than near-term earnings volatility.
Brokerages continue to remain constructive on India's renewable energy theme, supported by rising electricity demand, government incentives for domestic manufacturing, and sustained capacity additions across solar and wind power. The push for local manufacturing of solar modules and cells, along with ambitious renewable capacity targets, is expected to support sector growth over the medium term.
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