IEX Share Price dip
IEX‘s share price, which opened in the green on Tuesday, took a sharp downturn following reports that the government is moving ahead with the market coupling proposal.
IEX Share Price: Updates
According to an ET Now report, the Power Ministry reaffirmed its commitment to market coupling of power exchanges. The Ministry has instructed the Grid Controller of India to expedite its ongoing pilot study on the proposal. This study, overseen by the Central Electricity Regulatory Commission (CERC), is examining various technical elements. Grid India is expected to submit its findings to CERC within the next month.
The final decision on when market coupling will be implemented rests with CERC. The Power Ministry is targeting either the end of the current fiscal year or the start of FY26 for rolling out this new mechanism.
What is Market Coupling?
The concept of market coupling was introduced last year, aiming to create a uniform market clearing price across all power exchanges. This mechanism would streamline trading by setting a standardized price, potentially affecting individual exchanges like Indian Energy Exchange (IEX).
Impact on IEX
Prior to this news, IEX shares had been on an upward trend, rising over 60% in the last six months. In September 2024, brokerage firm Antique maintained a bullish stance on IEX, citing strong double-digit volume growth. The firm had raised its target price for IEX to ₹262, even suggesting that the risks posed by market coupling might diminish over time due to challenges in implementation.
Despite the drop in share price, IEX has shown strong growth potential in recent months. However, with the Power Ministry moving forward on market coupling, the future impact on IEX remains uncertain.
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