Mon. Nov 28th, 2022

Fxtriangle | Market analysis | Managed trading

Fxtriangle will make Fx trading look easy.

Low spot electricity prices boost trading volumes on IEX

1 min read

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. To take advantage of this, discoms—seeking to rationalize costs—turned to exchanges, wherein volumes spurted,” brokerage firm at Edelweiss Securities Ltd said in a note.

All-India electricity generation data from Central Electricity Authority show incremental improvement in demand in May. From about 25% decline in demand in April, the fall moderated to 18% last month.

Comparatively, volumes on the IEX saw faster recovery.

“The steady lifting of the covid-19 preventive lockdown enabled industries and commerce to get back to business, and thus consumption from commercial and industrial customers through open access also witnessed a rise,” IEX said in a statement.


Leave a Reply

Forex trading and any instruments related to Foreign Exchange Market are Speculative and carry substantial risk of loss of either partial equity or the entire deposit amount. Leverage adds up to the risk, before considering to invest in this venture, you should first consider your financial position and may seek the help of an independent financial advisor. FXtriangle dis-recommends the usage of loan instruments to trade in this market as it can hamper financial position. Please do not invest the money that you cannot afford to lose. FXtriangle provides all its services throughout the Globe Excluding (Nigeria, British Virgin Island & the Islamic Republic of Iran) and also provides limited service in some jurisdictions where investment in Overseas markets / Fx Exchanges are prohibited by Law If you are not sure to contact us before using any of our services. FXtriangle acts as an Independent Corporate Financial Advisor and connects you to various overseas exchanges and cannot be held liable for any financial damage occurring through their side. All of our partnered institutions are regulated in various jurisdictions.FXtriangle conducts an independent background check before partnering with any institutions to fulfill your investment objectives smoothly. The usage of our Business name, Logo or any trademark in any financial forum, website, review website, complaint arena, Billboards without our written permission will attract lawsuits.