IEX Shares Hit Lower Circuit as CERC Approves Market Coupling

The Indian Energy Exchange (IEX) shares experienced a dramatic 15% drop to Rs 159.7 on BSE, hitting the lower circuit limit. This sharp decline followed the Central Electricity Regulatory Commission's (CERC) announcement to implement market coupling in India's power sector, a move that has stirred concerns among investors.

Market Coupling: A Game Changer for IEX?

The CERC's decision to roll out market coupling in phases, starting with the Day-Ahead Market (DAM) by January 2026, aims to standardize price discovery and enhance operational efficiency. However, this could potentially dilute IEX's market advantages and revenue streams, as the new system requires centralized matching of bids across exchanges.

Analysts Weigh In on IEX's Future

Bernstein has slashed its price target for IEX to Rs 122 from Rs 160, maintaining a 'Market-Perform' rating, citing concerns over transaction fees and market position. Conversely, UBS remains bullish with a 'Buy' recommendation and a Rs 285 target, pointing to minimal impact on savings and cleared volumes.

Looking Ahead

As the power sector braces for these regulatory changes, all eyes will be on IEX's management for insights into strategy adjustments and volume projections ahead of the 2026 implementation.