Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

IEX shares rise 4.7% on easing market coupling concerns

EditorAmbhini Aishwarya
Published 11/23/2023, 12:42 AM
© Reuters.
IIAN
-

Indian Energy Exchange (IEX) shares experienced a notable uptick today, as investor concerns regarding the implementation of market coupling were alleviated. The stock climbed by 4.7% to ₹150.4 on the National Stock Exchange (NSE), reflecting a positive shift in market sentiment.

Market coupling has been a contentious issue since June, when the Power Ministry directed a phased initiation of this mechanism, which aims to unify the Market Clearing Price (MCP) across all power exchanges. The move was anticipated to challenge IEX's dominance in the Day-Ahead Market (DAM) and Real-Time Market (RTM) segments, potentially reducing its market share significantly.

The initial announcement had a dramatic impact on IEX's stock value, causing it to plummet over 18% across June 8 and 9. However, resistance from stakeholders against the Central Electricity Regulatory Commission's (CERC) market coupling proposal emerged by Thursday, August 21, 2023. This resistance was rooted in the current system of varied price discovery methods across different exchanges, which stakeholders preferred over a unified approach.

Today's increase in IEX's share price signals that investors are gaining confidence that the company may retain its competitive edge despite the proposed regulatory changes. The easing of concerns comes after months of uncertainty and highlights the market's adaptability to evolving regulatory environments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.