IEX share price fell over 4 percent on September 25, continuing its downward trend in the wake of a futures and options (F&O) trading ban. Additionally, the anticipated implementation of market coupling by FY25, which aims to standardise electricity pricing across exchanges, has also influenced trading sentiments.
Market coupling is set to streamline how electricity is traded, establishing a single price point at any given time across all exchanges. This change is expected by the end of the current fiscal year or early FY26. It will transform power exchanges into platforms merely for submitting buy and sell bids and facilitating power dispatch to buyers.
Furthermore, the Indian Energy Exchange (IEX), along with notable companies like Aditya Birla Fashion and Retail, Granules India, Hindustan Copper, and Vodafone Idea, has been included in the NSE’s F&O ban list. This action often follows when a stock’s open interest exceeds 95 percent of the market-wide position limits.
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Under the rules governing the NSE, the futures and options contracts for a stock enter a ban period when the open interest surges past the stipulated threshold. The ban is only lifted once the open interest falls below 80 percent, showing reduced trading pressure.
As of midday on September 25, IEX shares were trading down by more than 4 percent at Rs 202.20 on the NSE. Despite the recent losses, IEX shares have seen a significant 20 percent increase this year, marginally surpassing the Nifty’s gains of 19 percent.
Over the past year, IEX has demonstrated robust performance, with its stock value rising by 54 percent, notably outperforming the Nifty’s 31 percent increase during the same period. The anticipated market coupling mechanism and ongoing F&O trading restrictions will continue to be key factors influencing IEX’s share price movements.
