IEX‘s share price which started the day in the green on Tuesday slumped sharply after reports surfaced that the government was going ahead with the market coupling proposal.

What Happened: The Power Ministry has reaffirmed its dedication to the market coupling of power exchanges, as per an ET Now report. The Ministry has requested the Grid Controller of India to conclude its ongoing pilot study promptly.

The pilot study, being conducted under the guidance of the Central Electricity Regulatory Commission (CERC), is scrutinising various technical aspects of the proposal. Grid India is slated to submit its report to CERC within the next month.

The final decision on the timeline for implementation will be taken by CERC. The Ministry is aiming to roll out the new mechanism either by the end of the current fiscal year or at the start of FY26.

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The Power Ministry floated the idea of market coupling of power exchanges last year. This new mechanism is expected to set a uniform market clearing price across all exchanges.

The market coupling proposal comes in the backdrop of the Indian Energy Exchange’s (IEX) shares witnessing an upward trend. The stock has surged over 60% in the last six months.

In September 2024, brokerage firm Antique maintained a bullish call and raised its target price on the IEX scrip, citing the company’s double-digit volume growth.

Antique held a “buy” call on the stock and raised the target price to ₹262. The brokerage had said that the risk of market coupling might go away in time due to difficulties in its implementation.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.