Indian Energy Exchange falls on fears of rising competition from new pricing rules
IEX, currently India's leading platform for spot electricity price discovery, faces pressure as the power regulator prepares to introduce market coupling from January in a phased rollout.
Under the new system, other power exchanges will also act as market couplers, challenging IEX's central role.
The stock was on track for its seventh consecutive session of losses and logged its worst intraday single-day performance since listing in 2017.
Market coupling is an economic model used in energy markets to create a single, uniform price for electricity across different trading platforms or exchanges.
The order is "worse" than "what we have built in" and IEX is likely to feel the impact on its market share, says Bernstein. The brokerage, which maintains a "market perform" rating on the stock, has cut its target price to 122 rupees from 160 rupees to "reflect full impact of market coupling".
On an average, IEX shares are rated "buy" with median target price of 215 rupees, per data compiled by LSEG.
Shares of the company were trading down 15% at 159.7 rupees as of 1019 local time.
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