IEX surges 6%: 3 key factors to watch out for

India’s power market has been buzzing with action, and the Indian Energy Exchange (IEX) remains at the center of it. As the stock has slipped nearly 37% from its 52-week high peak, the big question that might be in one’s mind is- Is it time to buy? A recent report by the brokerage firm Nuvama gives a highlight into these dynamics of power demand, thermal generation, and electricity prices.

Power demand surges despite renewable energy slump

According to the brokerage report, India’s power demand jumped 6.6% year-on-year in February 2025, touching 131 billion units (BU).

Interestingly, this growth came even as renewable energy (RE) generation remained low. The non-fossil fuel mix stood at just 21%. The report attributes the rising demand to changing temperatures and an uptick in industrial activity as the financial year nears its end.

ALSO READWipro plummets 13% in 2025: 4 key factors to watch amidst restructuring of global business Thermal power on the rise, Prices show uptick

With renewable energy contribution dipping, thermal power stepped in to bridge the gap. According to the brokerage report, thermal power’s share rose to 79% in February, up from 77% last month. The Plant Load Factor (PLF), a measure of efficiency climbed to 73.1%, compared to 71.6% in February 2024.

Meanwhile, power prices saw an interesting trend. While IEX prices averaged Rs 5.0/unit, almost flat year-on-year, there was a noticeable rise in non-solar hours pricing, climbing to Rs 3.7/unit from Rs 3.3/unit in January. However, peak-hour power prices spiked to INR 10/unit on a few occasions.

IEX volumes expand 14% YoY

Despite price fluctuations, IEX’s Day-Ahead Market (DAM) volumes surged 14% year-on-year in February. The brokerage in its report notes that high prices during solar hours (Rs 5.0/unit) did not deter trading activity. At the same time, peak power demand saw a modest 0.32% month-on-month increase, signaling stability.

ALSO READMotilal Oswal has Buy recommendation on these 2 stocks at this hour

With India’s power demand on an upward trend, IEX remains a key player. The broader market correction has pulled the stock down from its highs, but the brokerage suggests keeping an eye on power sector developments, especially renewable energy additions, thermal power trends, and pricing movement in both solar and non-solar hours.

 » Read More

Related Articles

Physics Wallah confidentially files for $500-mn IPO

Edtech giant Physics Wallah has confidentially filed for an initial public offering (IPO) that could raise as much as $500 million, according to a report by IFR. The company in October 2024 said it might launch a $400-500-million IPO in 2025. If the public issue is launched, Physics Wallah will be the first pure-play edtech

FY25 advance taxes grow 14.6%; Q4 rise at just 2.4% 

Advance tax collections from the corporate sector, other firms and individuals in the current fiscal stood at Rs 10.45 lakh crore as on Sunday, up 14.6% on year. In the corresponding period of last fiscal, these collections — a proxy of corporate profitability and the state of the economy — stood at Rs 9.11 lakh

Each demerged Vedanta firm has potential to be $100-bn company, chairman Agarwal

The four new companies formed after the restructuring of Vedanta have the potential to be $100 billion firms each, chairperson Anil Agarwal has said in a letter to shareholders. He has also highlighted the potential of the natural resources sector, both in India and global economies.“While Vedanta currently contributes close to 1.4% to India’s GDP, there

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

Physics Wallah confidentially files for $500-mn IPO

Edtech giant Physics Wallah has confidentially filed for an initial public offering (IPO) that could raise as much as $500 million, according to a report by IFR. The company in October 2024 said it might launch a $400-500-million IPO in 2025. If the public issue is launched, Physics Wallah will be the first pure-play edtech

FY25 advance taxes grow 14.6%; Q4 rise at just 2.4% 

Advance tax collections from the corporate sector, other firms and individuals in the current fiscal stood at Rs 10.45 lakh crore as on Sunday, up 14.6% on year. In the corresponding period of last fiscal, these collections — a proxy of corporate profitability and the state of the economy — stood at Rs 9.11 lakh

Each demerged Vedanta firm has potential to be $100-bn company, chairman Agarwal

The four new companies formed after the restructuring of Vedanta have the potential to be $100 billion firms each, chairperson Anil Agarwal has said in a letter to shareholders. He has also highlighted the potential of the natural resources sector, both in India and global economies.“While Vedanta currently contributes close to 1.4% to India’s GDP, there

FMCG firms seek separate law for beauty products

Fast-moving consumer goods (FMCG) companies are asking for a separate law to govern beauty and personal care (BPC) products, saying current regulations under the Drugs and Cosmetics Act 1940 impede growth. At present, the making of soaps, skin care, hair care, oral care and cosmetic products, much like drugs, is regulated under a system of

Amazon eyes spinoff and local listing Valuation may get impacted due to ongoing CCI probe

E-commerce major, Amazon, is exploring the possibility of spinning off its India operations and listing it, according to industry sources. The company, which is the second largest player in the e-commerce sector, behind Flipkart, has initiated preliminary talks with investment banks to assess the feasibility of such a move, sources added. According to a report