Shares of Indian Energy Exchange Ltd. (IEX) plummeted 26% on July 24, hitting a low of ₹139.02, following the Central Electricity Regulatory Commission’s (CERC) decision to implement market coupling norms for the Day Ahead Market (DAM). This sharp decline marks one of the worst single-day performances for the stock, with over 4.4 crore sell orders pending on the NSE at the lower circuit.
As per the latest CERC announcement, market coupling in the DAM segment will be implemented by January 2026. Under this framework, all buy and sell orders from various power exchanges will be aggregated and matched by Market Coupling Operators (MCOs) to discover a uniform market clearing price, thereby eliminating the competitive edge of any single platform.
IEX, which currently commands around 85% market share in the spot electricity market, stands to lose its pricing advantage due to this move. Analysts view this as a structural shift in the power trading ecosystem. Brokerage Bernstein maintained a ‘market perform’ rating but slashed its target price to ₹122, citing the regulatory overhang as a major concern.
The stock opened 23% lower and remains in the F&O ban, restricting new derivative positions. IEX is also expected to announce its quarterly results later today, which will be closely watched for further direction.
