IEX shares climb 6%  in early deals; here’s why

Shares of Indian Energy Exchange (IEX) surged nearly 6% in early deals after the energy bourse recorded a 29% rise in overall trade volume in May. IEX’s overall trade volume climbed to 10,633 million units (MU) in May against 8,251 MU in the year-ago period. The electricity (trade) volumes at 9,568 MU increased 21 per cent year-on-year.

IEX clocked a monthly overall volume of 10,633 MU in May 2024, rising 28.9 per cent year-on-year.

The renewable energy certificates (REC) increased 640.3 per cent year-on-year to 1,055 MU.

IEX stock surged 5.69% to Rs 166.40 against the previous close of Rs 157.05 on BSE. Total 15.11 lakh shares of the firm changed hands amounting to a turnover of Rs 24.81 crore on BSE. Market cap of the firm rose to Rs 14,881.97 crore.

In terms of technicals, the relative strength index (RSI) of IEX stands at 54.1, signaling it's trading neither in the overbought nor in the oversold zone. The stock has a beta of 0.8, indicating low volatility in a year. IEX shares are trading higher than the 5 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages. 

A total of 10.55 lac RECs (equivalent to 1,055 MU) were traded in the trading sessions held on May 8 and May 29 at a clearing price of Rs 185/REC and Rs 165/REC, respectively.

At Rs 165 per certificate, the REC market recorded an all-time low price in the trading session held on May 29, 2024.

These prices provide an opportunity for obligated entities (Discoms and captive power producers) to meet their renewable purchase obligations and for voluntary customers to meet their sustainability aspirations.

Indian Energy Exchange is engaged in providing an automated trading platform for the physical delivery of electricity, renewables, and certificates. It offers various trade markets, such as the electricity market, green market and certificates. The electricity market includes day-ahead market, term ahead market, real-time market and cross border electricity trade. The green market includes green term ahead market and green day-ahead market.