IEX shares price slumped deep in the red on Friday morning to hit the lower circuit at ₹122.80.
What Happened: Shares of the energy exchange have been dampened after news reports surfaced that the power ministry has directed Central Electricity Regulatory Commission (CERC) to execute the process of market coupling.
The proposed change would transform Exchanges into mere bid aggregation platforms, with price discovery being handled by a centralised Exchange, likely operated by a government entity. Consequently, this would diminish the competitive advantage of liquidity that IEX currently enjoys.
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It’s worth noting that IEX currently holds nearly 100% market share in the DAM and RTM segments, which together account for 75%-80% of Exchange volumes.
With this development, brokerages also turned sour on the stock. Antique downgraded the stock’s rating to “sell” with a price target of ₹105. Nuvaman also maintained its “reduce” rating with a price target of ₹127.
Price Action: IEX share price was down 10% to hit lower circuit at ₹122.80 shortly after the markets opened on Friday.
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