Shares of Indian Energy Exchange (IEX) witnessed sharp intraday volatility on Monday after developments related to the market coupling case came into focus.
The stock rose as much as 2.4% during the session to hit an intraday high of ₹137.34 on the NSE, compared to the previous close of ₹134.12. However, the gains later fizzled out, with the stock turning flat in trade and quoting around ₹133.90 later in the session.
The move came after reports emerged that the Supreme Court issued a notice to the Central Electricity Regulatory Commission (CERC) on IEX’s plea challenging the market coupling order.
According to Informist, the Supreme Court said it would examine IEX’s plea against the market coupling framework but did not pass any interim order on the matter.
The development is being closely tracked by market participants as market coupling is considered a significant structural issue for power exchanges in India.
Market coupling refers to a mechanism where electricity buy and sell bids across multiple exchanges are aggregated to determine a uniform market clearing price. Investors have been concerned that such a move could impact IEX’s dominant market position in the power trading segment.
IEX is currently the country’s largest electricity exchange platform and commands a major share in the day-ahead power market. Any regulatory changes around market coupling are therefore viewed as material for the company’s business outlook and pricing power.
Despite the initial rally following the court development, traders later booked profits, leading the stock to erase most of its gains by late morning trade.
The stock has remained under pressure over the past year amid concerns around regulatory uncertainty and increasing competition in the power exchange ecosystem.