IEX shares extend gains, up 13% in 2 sessions. What's triggering the rally?

IEX share price: Shares of Indian Energy Exchange (IEX) gained over 2% to their day's high of Rs 151.50 after sharp investor attention turned to the ongoing market coupling case, with the Electricity Appellate Tribunal (APTEL) raising pointed questions over how the regulatory framework was formulated, even as the power exchange reported steady growth in electricity trading volumes for the December quarter. With today's rise, the stock is up 13% in two sessions.

On Tuesday, IEX shares rallied sharply, touching an intraday high of Rs 153.35 on the BSE, as hopes of relief emerged from the legal proceedings related to market coupling regulations proposed by the Central Electricity Regulatory Commission (CERC). The stock ended the session at Rs 146.80, higher by 9.3%.

Tribunal flags concerns on regulatory process

The market reaction followed observations made by APTEL during the hearing of petitions challenging the market coupling framework. The tribunal raised multiple concerns and questioned how the market coupling rules were drafted, remarking that CERC should have acted independently while formulating the framework.

APTEL also pointed to excessive theatrics observed during the formulation process and emphasized the need for the regulator to maintain independence and remain above suspicion.

According to CNBC TV-18, the sharp upward move in IEX shares tracked developments in the ongoing legal proceedings. The tribunal has fixed January 9 as the next date of hearing after counsel sought additional time. Reports also suggest that APTEL informed CERC that if it signals a potential withdrawal of the order, the case would be closed by Friday.

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Q3 volumes rise, prices soften

Separately, the power exchange on Monday released its business update for the third quarter of FY26. Indian Energy Exchange recorded electricity traded volumes of 34.08 billion units, excluding TRAS, in Q3 FY26, reflecting a year-on-year growth of 11.9%.

During the quarter, improved supply from hydro and wind sources, along with steady coal-based generation, enhanced supply liquidity on the exchange platform, contributing to lower power prices across key market segments.

The Market Clearing Price in the Day-Ahead Market averaged Rs 3.22 per unit in Q3 FY26, a decline of 13.2% from the same quarter last year. The Real-Time Market Clearing Price stood at Rs 3.26 per unit, down 11.6% year-on-year.

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