Shares of Indian Energy Exchange are expected to remain under sharp investor focus on Wednesday as developments in the ongoing market coupling case continue to influence sentiment, even as the power exchange delivered steady growth in electricity trading volumes during the December quarter.
The stock has drawn heightened attention following strong price action in the previous session, driven by optimism around recent observations made during legal proceedings.
Sharp Rally Tracks Tribunal Observations
On Tuesday, IEX shares rallied sharply, touching an intraday high of Rs 153.35 on the BSE. The stock eventually closed at Rs 146.80, marking a gain of 9.3 percent for the session.The rally came after the Electricity Appellate Tribunal raised pointed questions during hearings related to the proposed market coupling framework. The tribunal questioned how the framework was drafted and underlined that the regulator should have exercised independent judgment during the formulation process. It also stressed that regulatory actions must remain free from doubt and above suspicion.
The next hearing in the matter has been scheduled for January 9, after legal counsel sought additional time.
Legal Proceedings Drive Market Sentiment
Investor sentiment improved as the tribunal indicated that the matter could be closed if there is a signal pointing toward a possible withdrawal of the order. The developments have kept market participants closely tracking the case, given its potential implications for the structure of power trading and the exchange-led market model.The recent share price movement has been attributed to market interpretation of these publicly available proceedings, with no separate developments influencing trading beyond what is already in the public domain.
Q3 FY26 Electricity Volumes Register Solid Growth
Alongside the legal developments, Indian Energy Exchange released its business update for the third quarter of FY26 earlier this week. The exchange reported electricity traded volumes of 34.08 billion units during Q3 FY26, excluding TRAS, reflecting a year on year growth of 11.9 percent.The performance highlights continued participation across power market segments despite evolving regulatory discussions.
Softer Power Prices Amid Improved Supply Conditions
During the quarter, higher availability from hydro and wind sources, along with stable coal based generation, improved overall supply liquidity on the exchange platform. This enhanced supply environment led to softer power prices across key market segments.The Market Clearing Price in the Day Ahead Market averaged Rs 3.22 per unit in Q3 FY26, down 13.2 percent compared to the same quarter last year. The Real Time Market Clearing Price averaged Rs 3.26 per unit, reflecting a year on year decline of 11.6 percent.
With both regulatory developments and operational performance unfolding in parallel, IEX shares are likely to remain closely watched as the market awaits the next hearing in the case and further clarity on the road ahead.
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