MUMBAI : Shares of Indian Energy Exchange Ltd (IEX) have recovered sharply from the recent market-wide sell-off.
The stock is now down just 6% from its January highs. The recovery has been attributed to the sharp uptick in trading volumes on its electricity trading platform.Volumes which declined 6.6% in April jumped 47% in May.
The steep fall in electricity prices in the spot market, given the lockdown, attracted price sensitive buyers such as state electricity boards, whose financial situation worsened in the recent past.Prices in March-May were down at least a quarter year-on-year.
So far this month, rates have declined 28% reflecting low fuel costs and spare generation capacities."Merchant prices continue to remain subdued.