Indian Energy Exchange (IEX) shares have witnessed a massive sell-off today. The shares of IEX have fallen by 15% to a one-year low level of Rs. 116.05 on the BSE. This is a drastic drop from its high of Rs. 185.50 per share, which was recorded on June 9, 2022, a year ago. Currently, the shares are trading at Rs. 123.65 with a decline of 9.41% on the BSE.
Why is there a sharp fall in IEX shares?
The sell-off in the shares of IEX is due to an order issued by the Power Ministry. The Ministry has directed the Central Electricity Regulatory Commission (CERC) to start a phased market coupling process. Under this process, the power tariffs on all power exchanges in the country will be made the same. Presently, all three exchanges, IEX, Power Exchange India Limited (PXIL), and Hindustan Power Exchange (HPX), determine the prices on their own. However, with this order, the prices will be uniform, and the exchanges will only be responsible for collecting bids. This move is a step towards “One Nation, One Grid, One Price.”
What do experts say about the future of IEX shares?
According to experts, the fall in IEX shares is expected to continue for some time. Brokerage firm Antique has downgraded the stock and given it a sell rating. They predict that the shares may fall further to Rs. 105. Earlier, IEX had set a target of Rs. 138 per share. Axis Capital has also slashed its target price from Rs. 180 to Rs. 111 per share.
Conclusion
The sell-off in IEX shares today is due to the Power Ministry’s order to make the tariffs uniform across all power exchanges in the country. The move towards “One Nation, One Grid, One Price” is expected to result in a decline in IEX shares for some time. However, experts believe that the fall may not be as steep as expected, and the shares may stabilize at around Rs. 105.
Follow DelhiBreakings on Google News
Superfast News Coverage by DelhiBreakings.com team.
For Superfast national news and Delhi Breaking Stories visit us daily at https://delhibreakings.com
