IEX Share Price Crashes 26% To Hit All-Time Low After CERC Approves Rollout Of Market Coupling Move

IEX Share Price Today: Shares of Indian Energy Exchange Ltd. hit an all-time low, declining over 26% as of 1:00 p.m., after being locked in a 10% lower circuit on Thursday. This followed the Central Electricity Regulatory Commission's approval of a phased rollout of market coupling across India's power exchanges, starting with a three-month pilot run.

The decision shifts price-setting responsibilities from individual exchanges to a central body, a development that may hurt Indian Energy Exchange, which currently handles the bulk of trade volumes and plays a key role in price discovery.

The change is aimed at improving market efficiency, but it reduces the commercial price discovery role of exchanges like IEX in determining prices. Since IEX earns most of its revenue from high-volume trading in the Day-Ahead Market and Real-Time Market segments, the shift could affect its position and profitability.

Meanwhile, shares of PTC India has surged almost 5%, with an intraday high of Rs 207, as the company stands to benefit from the news.

Shares of IEX fell has hit an all time low, as the stock fell further 26.01% to Rs 139.02 apiece, as of 1:00 p.m. This compares to a 0.64% decline in the NSE Nifty 50. It was trading 20.01% lower to Rs 150.30 apiece, as of 10:50 a.m. The stock had hit lower circuit, when it fell 10% to Rs 169.10 apiece, as of 9:20 a.m.

The stock has fallen 20.30% in the last 12 months and 23.52% year-to-date. Total traded volume so far in the day stood at 7.07 times its 30-day average. The relative strength index was at 43.07.

Out of 13 analysts tracking the company, seven maintain a 'buy' rating, three recommend a 'hold' and three suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 45.1%.