Latest news with #CERC
Mint
15 hours ago
- Business
- Mint
IEX share price extends fall; crashes 37% in ten sessions. Opportunity for bottom fishing?
IEX share price continued its downward trend on Tuesday, falling over 5% amid persistent selling pressure. IEX shares declined as much as 5.03% to hit a low of ₹ 132.00 apiece on the BSE. IEX shares have now declined in nine of the last ten trading sessions, losing nearly 37% of its value during this period. The sharp correction in Indian Energy Exchange share price follows heightened volatility driven primarily by regulatory developments. Investor sentiment has been weighed down by the Central Electricity Regulatory Commission's (CERC) approval of market coupling, a move expected to significantly alter the competitive dynamics of the power trading ecosystem. Here are the factors contributing to recent slide in IEX share price: Approval of Market Coupling: The CERC's decision to implement market coupling — starting with the Day-Ahead Market (DAM) in January 2026 — has been a major drag on the IEX stock price. The reform aims to consolidate price discovery across multiple power exchanges by integrating their bids, which could dilute IEX's current dominance. Threat to Market Leadership: With over 80% market share, IEX has long benefited from its deep liquidity and efficient price discovery. However, market coupling raises concerns about potential loss of these competitive advantages. Brokerage Downgrades: Brokerage firms have responded to the regulatory shift by revising their outlook on the stock. Jefferies, for instance, reiterated its 'Underperform' rating, slashing IEX share price target to ₹ 105 from ₹ 150. The brokerage expects IEX's market share to decline from over 80% in FY25 to around 50% by FY28 due to the impending changes. Exit from F&O Ban List: IEX was recently removed from the Futures & Options (F&O) ban list. This may have triggered heightened trading activity, adding to the stock's volatility. IEX share price remained under pressure, with every bounce getting sold into. 'IEX share price is re-testing the 24th July swing low near ₹ 131, the day when a sharp sell-off was witnessed. Going ahead, a break below ₹ 131 could trigger further weakness. On the flip side, ₹ 150 is likely to act as resistance,' said Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One. IEX share price has declined 29% over the past month and 25% in the last six months. On a one-year basis, IEX stock is down 28%, though it has gained 122% over a five-year period. At 12:35 PM, IEX share price was trading 3.24% lower at ₹ 134.50 apiece on the BSE. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
2 days ago
- Business
- Economic Times
IEX shares slide 9% as market coupling fears continue to drag, brokerages cut targets
Shares of Indian Energy Exchange (IEX) fell as much as 8.9% on Monday, July 28, to Rs 132.15 on BSE, as renewed selling pressure weighed on the stock amid persistent concerns over market coupling — a regulatory shift that threatens the company's dominance in power trading. ADVERTISEMENT The decline comes after IEX shares rebounded 13% on Friday, following the release of strong Q1 FY26 results. That rally offered temporary respite to investors after the stock's record single-day plunge of nearly 30% on Thursday, when the Central Electricity Regulatory Commission (CERC) approved market coupling – a move widely viewed as a structural threat to the company's business model. On Thursday, the sell-off triggered massive trading volumes, with 12.77 crore shares worth Rs 1,740 crore changing hands, surpassing the combined volumes of all 16 earlier trading sessions in July. Over 43.75% of the shares traded on the NSE were marked for delivery, indicating a sharp churn in investor positions. Brokerages have flagged the CERC's order as a significant threat to IEX's pricing power and market said the regulation 'disrupts IEX's monopoly in the DAM market by introducing uniform price discovery across exchanges. This levels the playing field, impacting IEX's moat of price determination.' ADVERTISEMENT The brokerage expects IEX's share in the DAM and RTM segments (currently 99% of FY25 volumes and 80–85% of sales) to fall to 70% by FY27. 'A price war-led trading margin cut is likely, from 4p/kWh to 3.5p/kWh by FY28E,' Nuvama said, retaining a 'reduce' rating with a target price of Rs 133, down from Rs said that market coupling will accelerate IEX's market share losses, projecting a decline from over 80% in FY25 to 50% by FY28. 'The market coupling threat has become a reality… The regulation has taken away [IEX's liquidity advantage] as all power exchanges will have a uniform clearing price,' it said. Jefferies cut its price target to Rs 105 from Rs 150 and maintained an 'underperform' rating. ADVERTISEMENT Elara Capital also flagged 'significant pressure on IEX,' noting that CERC has approved phased implementation of market coupling, starting with the day-ahead market (DAM) by January 2026. 'This poses a major threat to Indian Energy Exchange's dominance, as market coupling could shift volume to rival exchanges,' it said, adding that IEX could be forced to lower trading margins to retain market Q1 FY26 performance briefly supported the stock last week. The company reported a 25% year-on-year (YoY) rise in consolidated net profit to Rs 120 crore, compared to Rs 96 crore a year earlier. Revenue climbed 19% YoY to Rs 184.2 crore, driven by robust trading activity. Electricity volumes rose 14.9% YoY to 32.4 billion units, while Renewable Energy Certificates (RECs) surged 149.3% YoY to 52.7 lakh units. ADVERTISEMENT 'The company is currently undertaking a detailed impact assessment of the implications of [market coupling] and will keep stakeholders informed of any further developments,' IEX said in its post-results analysts caution that earnings momentum could soften as regulatory reforms reshape market dynamics. 'With the core business model under pressure and limited clarity on long-term profitability, markets have rightly reacted. For IEX, the days of monopoly-like pricing power may now be history,' said Harshal Dasani, Business Head at INVasset PMS. Also read | Understand 'Market Coupling Approved' before reacting to IEX stock price movement and making any decision (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
2 days ago
- Business
- Time of India
IEX shares slide 9% as market coupling fears continue to drag, brokerages cut targets
Brokerages warn of market share erosion Live Events Strong earnings overshadowed (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Indian Energy Exchange (IEX) fell as much as 8.9% on Monday, July 28, to Rs 132.15 on BSE, as renewed selling pressure weighed on the stock amid persistent concerns over market coupling — a regulatory shift that threatens the company's dominance in power decline comes after IEX shares rebounded 13% on Friday, following the release of strong Q1 FY26 results. That rally offered temporary respite to investors after the stock's record single-day plunge of nearly 30% on Thursday, when the Central Electricity Regulatory Commission (CERC) approved market coupling – a move widely viewed as a structural threat to the company's business Thursday, the sell-off triggered massive trading volumes, with 12.77 crore shares worth Rs 1,740 crore changing hands, surpassing the combined volumes of all 16 earlier trading sessions in July. Over 43.75% of the shares traded on the NSE were marked for delivery, indicating a sharp churn in investor have flagged the CERC's order as a significant threat to IEX's pricing power and market said the regulation 'disrupts IEX's monopoly in the DAM market by introducing uniform price discovery across exchanges. This levels the playing field, impacting IEX's moat of price determination.'The brokerage expects IEX's share in the DAM and RTM segments (currently 99% of FY25 volumes and 80–85% of sales) to fall to 70% by FY27. 'A price war-led trading margin cut is likely, from 4p/kWh to 3.5p/kWh by FY28E,' Nuvama said, retaining a 'reduce' rating with a target price of Rs 133, down from Rs said that market coupling will accelerate IEX's market share losses, projecting a decline from over 80% in FY25 to 50% by FY28. 'The market coupling threat has become a reality… The regulation has taken away [IEX's liquidity advantage] as all power exchanges will have a uniform clearing price,' it said. Jefferies cut its price target to Rs 105 from Rs 150 and maintained an 'underperform' Capital also flagged 'significant pressure on IEX,' noting that CERC has approved phased implementation of market coupling, starting with the day-ahead market (DAM) by January 2026. 'This poses a major threat to Indian Energy Exchange's dominance, as market coupling could shift volume to rival exchanges,' it said, adding that IEX could be forced to lower trading margins to retain market Q1 FY26 performance briefly supported the stock last week. The company reported a 25% year-on-year (YoY) rise in consolidated net profit to Rs 120 crore, compared to Rs 96 crore a year earlier. Revenue climbed 19% YoY to Rs 184.2 crore, driven by robust trading activity. Electricity volumes rose 14.9% YoY to 32.4 billion units, while Renewable Energy Certificates (RECs) surged 149.3% YoY to 52.7 lakh units.'The company is currently undertaking a detailed impact assessment of the implications of [market coupling] and will keep stakeholders informed of any further developments,' IEX said in its post-results analysts caution that earnings momentum could soften as regulatory reforms reshape market dynamics. 'With the core business model under pressure and limited clarity on long-term profitability, markets have rightly reacted. For IEX, the days of monopoly-like pricing power may now be history,' said Harshal Dasani, Business Head at INVasset PMS.
New Indian Express
4 days ago
- Politics
- New Indian Express
Justice league: Telangana HC issues notices over alleged irregular appointments to Wage Board
Notices to officials over wage board appointments A bench of the Telangana High Court on Wednesday issued notices to top officials, including the chief secretary, principal secretary (Labour & Employment), Commissioner of Labour and two members of the Telangana State Wage Advisory Board, seeking their response within four weeks to alleged irregular appointments to the Board. The bench, comprising Chief Justice Aparesh Kumar Singh and Justice P Sam Koshy, issued the notices during the scrutiny stage of a PIL filed by trade union activist Ganji Srinivas, who also serves as the general secretary of a labour union, seeking suspension of two GO — one issued on March 15, 2024 appointing B Janak Prasad as the Board chairman and another on December 12, 2024, appointing S Narasimha Reddy as a member. Interim relief to Discoms in power supply shortfall case A bench of Telangana High Court on Thursday granted interim relief to the TSSPDCL and TSNPDCL in a case related to payment of compensation for shortfall in power supply. The bench, comprising Chief Justice Aparesh Kumar Singh and Justice P Sam Koshy, stayed the orders issued by the CERC, which had directed the two Discoms to pay Rs 179 crore for additional electricity supplied to the grid to compensate for power shortfalls. The court will hear further arguments after three weeks. Challenging the CERC directive, the Discoms filed a petition, arguing that the regulatory body has no authority to levy such charges. They contended that CERC's order to recover Rs 179 crore for compensating grid imbalances is outside its jurisdiction.
Time of India
5 days ago
- Business
- Time of India
IEX shares rebound 13% after record plunge; stock stays in F&O ban. What should investors do?
Q1 results offer relief Live Events Market dominance under scrutiny F&O ban limits trading (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Indian Energy Exchange (IEX) rebounded sharply on Friday, July 25, surging as much as 12.8% to Rs 149.45 on the BSE, a day after suffering their steepest single-day decline on record. The stock remains under the Futures and Options (F&O) ban even as strong quarterly earnings offered some respite to Thursday, July 24, IEX shares plunged nearly 30% to a 52-week low after the Central Electricity Regulatory Commission (CERC) approved market coupling , a regulatory change that has long been viewed as a structural threat to the company's dominance in power sell-off triggered massive trading volumes, with 12.77 crore shares worth Rs 1,740 crore changing hands, surpassing the combined volumes of all 16 previous trading sessions in July. Over 43.75% of the shares traded on the NSE were marked for delivery, indicating heavy investor activity had intensified in the days leading up to the announcement. Volumes over the three sessions prior to Thursday stood at 78 lakh, 97 lakh and 92 lakh, compared to a 10-day average of 61 rebound on Friday followed the company's Q1FY26 results , released after market hours on Thursday. IEX reported a 25% year-on-year (YoY) increase in consolidated net profit to Rs 120 crore, compared to Rs 96 crore a year earlier. Revenue for the quarter climbed 19% YoY to Rs 184.2 crore, driven by robust trading volumes on the exchange rose 14.9% YoY to 32.4 billion units in Q1FY26. Renewable Energy Certificates (RECs) surged 149.3% YoY to 52.7 lakh units.'The company is currently undertaking a detailed impact assessment of the implications of [market coupling] and will keep stakeholders informed of any further developments,' IEX said in its post-results commands over 90% market share in the Day-Ahead Market (DAM) and Real-Time Market (RTM), both of which are key revenue drivers. However, centralized price discovery under market coupling could erode this advantage."Market coupling has been a persistent overhang for IEX, and with CERC's recent approval for its implementation, we expect a sharp decline in the company's market share, resulting in a loss of its dominant position in the DAM and RTM segments," said Rupesh Sankhe, vice president and power sector analyst at Elara SecuritiesTo retain volume amid rising competition, IEX may be compelled to lower trading margin, further weighing on earnings, said Sankhe.'While regulators aim to improve efficiency and transparency, investors fear revenue erosion and reduced platform stickiness. With the core business model under pressure and limited clarity on long-term profitability, markets have rightly reacted. For IEX, the days of monopoly-like pricing power may now be history,' said Harshal Dasani, Business Head at INVasset, stock was placed under the F&O ban on Thursday after open interest in its derivatives contracts breached 95% of the Market-Wide Position Limit (MWPL) on the NSE. Under this framework, no new positions can be created in F&O contracts, though existing ones can be squared off. The mechanism is designed to curb speculative build-up and prevent market of the F&O ban can attract penalties under Sebi norms, ranging from 1% of the position value (minimum Rs 5,000) up to Rs 1 lakh, along with potential trading suspensions.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
