By- John, September 25, 2024
Why IEX Stock Is Falling Sharply Today
Indian Energy Exchange (IEX) shares tanked over 7% today after reports confirmed the government’s push to implement the market coupling proposal. This news marks a sharp reversal after the stock had shown a strong upward trend in recent months.
What Happened?
The Power Ministry has reaffirmed its commitment to market coupling for power exchanges, according to an ET Now report. The ministry has asked Grid Controller of India to complete its ongoing pilot study, which is expected to conclude within a month. Once the study is reviewed, the Central Electricity Regulatory Commission (CERC) will finalize the timeline for rolling out the new system, which could happen by the end of this fiscal year or early FY26.
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Why This Matters:
Market coupling would establish a uniform market clearing price across all power exchanges, which could significantly affect IEX’s competitive advantage. This proposal comes after a 60% surge in IEX’s stock over the last six months, driven by strong volume growth.
Analyst Outlook:
In September 2024, brokerage firm Antique maintained a bullish outlook on IEX, raising its target price to ₹262, citing double-digit growth. However, they also noted that the risk of market coupling may diminish due to implementation challenges.
What’s Next?
As the government moves forward with the proposal, investors are closely watching how the changes will impact IEX’s future. With a potential rollout of market coupling by FY26, the stock may continue to see volatility.
