PM Narendra Modi at a meeting on rooftop solar scheme
By S Jha
New Delhi, January 23: A day after the ‘Pran Pratistha’ of the Ram Temple Temple in Ayodhya was hailed as a spiritual awakening, Indian Stock Market became the fourth largest in the world. This happened on a day when the indices were on the holiday as ‘China aversion’ of the world pushed the Hong Kong Stock Market further down in the valuation.
The Indian indices are set for a strong start on Tuesday after a day off amid signs of the banking stocks rejecting the notion that they have all become bad apples in the company of the HDFC Bank. With the likely gain on Tuesday, the Indian indices may further extend the current valuation of $4.33 trillion, which is just marginally above $4.28 trillion of Hong Kong.
The foreign direct investment was a net negative in China in 2023. Efforts of China to pump prime the economy have also not addressed the concerns of the investors that its economy is now in a confirmed stage of extensive downslides. Also, brutal suppression in Hong Kong is now spilling over to the economy and businesses.
Indian equity indices are soaring day after day and scrips are commanding maddening valuations. Praveg, which is engaged in putting up tent cities with a footprint in Ayodhya, is now valued at Rs 2500 crores. Its annual revenue is just Rs 100 crores. Just like any other microcap scrip, Praveg has also more than doubled in just six months.
But there is an intense sense of ‘FOMO’ in the solar scrips as Prime Minister Narendra Modi keeps raising the spotlight on the sector. After returning from Ayodhya, Modi walked into a presentation while sporting ‘dhoti-kurta’ and ‘ang vastram’. He announced that roof top solar will be installed at the houses of one crore middle class people. The scheme has already been put in place and Rural Electrification Corporation is designated as a nodal agency. In six months, REC has given a return of 165 per cent. The likes of Sutlej Jal Vidyut Nigam Limited and NHPC are now wearing solar panels to gain the investors’ attentions. Their scrips are also in furious run on the bourses.
Australian Solar, a SME IPO, was offered at about Rs 50 a share, and it listed on the bourses at over Rs 165. The PSU IPO IREDA was offered at Rs 25 a share recently, and the scrip is now a kiss away from Rs 150. Waaree Renewable Technology was at about Rs 1000 a share is now locked in the upper circuit at Rs 2800.
With valuations soaring, the companies are also on a furious path to split to keep their prices attractive for the retail investors. The pack of scrips going for split include the likes of Waaree Renewable Technology and Persistent Systems, They follow in the footsteps of Nestle, Newgen Software, Avantel, and several others. The stock market appears to be telling the people “catch me if you can”.
(Disclaimer: This article makes no suggestion for buy or sell of any stock; one must consult a SEBI-registered advisor before making any investment decisions)
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