Shares of Indian Energy Exchange (IEX) rose nearly 3% in Wednesday’s trade after global brokerage Bernstein upgraded the stock to ‘Market-Perform’ from ‘Underperform’. The brokerage also raised its target price to ₹160 from ₹152, marking its first positive revision on IEX after three years of maintaining a cautious stance.
IEX shares opened strong and touched an intraday high of ₹194.34, reflecting a 2.8% gain over its previous close of ₹187.77. At around 9:45 AM, the stock was trading at ₹193.02.
Bernstein’s upgrade comes on the back of strong volume growth at the exchange, along with improving support from the derivatives segment. The brokerage, however, flagged that regulatory risks still warrant caution for investors.
In the past, Bernstein maintained an ‘Underperform’ rating citing two primary concerns: high transaction charges (nearly 1% of product value, among the highest globally) and muted volume growth due to renewable power remaining tied up in long-term contracts.
However, the recent surge in trading volumes, fueled by higher coal availability, lower spot prices, and better participation from renewable power generators, has improved the outlook. The brokerage also noted emerging support from IEX’s power derivatives segment, driven mainly by speculative interest rather than pure hedging demand.
Bernstein remains watchful of regulatory developments but acknowledged that IEX’s business environment has started showing signs of structural improvement.
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