Indian Energy Exchange drops after brokerages flag risk of market coupling

Indian Energy Exchange

09/06/2023 06:10

** Shares of Indian Energy Exchange  IIAN.NS  fall as much
as 14.99% to 116 rupees, mark sharpest intraday pct loss since
March 13, 2020
    ** Stock hits lowest level since May 27, 2021
    ** Ministry of Power recently decided to go ahead with
market coupling and directed CERC to expedite consultation
process
    ** IEX is the platform for electricity spot price
determination in India, which is its "moat", says brokerage
Nuvama
    ** Adds market coupling is a big negative for IEX,
reiterates "reduce" with TP of 127 rupees
    ** Brokerage Antique Stock Broking believes spot market
prices will be higher than bilateral prices, unlike in the past
which was favorable for exchanges; downgrades stock to "sell"
with TP of 105 rupees        
    ** IIAN's relative strength index below 30, indicating it is
oversold
    ** More than 72.6 mln shares change hands by 10:30 a.m. IST,
11.6x 30-day avg of 6.2 mln shares
    ** 4 of the 13 analysts covering the stock have a "buy" or
"strong buy" rating, 2 have "hold" while 7 rate it at "sell" or
"strong sell"; median PT is 131.50 rupees - Refinitiv data
    


 (Reporting by Ashish Chandra in Bengaluru)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))