Shares of Indian Energy Exchange Ltd (IEX) witnessed a sharp intraday drop on Tuesday, plunging over 10% from the day’s high, as investor sentiment soured following fresh developments around market coupling regulations.
According to CNBC-TV18, the Power Minister will conduct stakeholder consultations on market coupling, a mechanism that could significantly alter the way power trades happen on exchanges like IEX. Government sources indicated that the process would be based on a broad bid and not an internal bid, a key concern for dominant platforms like IEX.
The sharp intraday sell-off came shortly after this report broke, as the street fears that market coupling may reduce the pricing power or trading volume of IEX in the long run. The average daily volume on the counter rose sharply, reflecting increased selling pressure from both institutional and retail investors.
This isn’t the first time market coupling has put IEX under pressure. Back in February, the Power Secretary had already hinted at reviewing the Grid Controller’s report, indicating regulatory headwinds ahead.
With a current market cap of ₹187.12B, P/E ratio of 42.73, and a dividend yield of 1.45%, IEX remains a key player in India’s power trading ecosystem. However, today’s move shows how sensitive the stock remains to regulatory overhangs.
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