- 08 Jun 2022
- ICICIdirect Research
IEX TRADES 7596 MUS IN MAY
IEX - 180 Change: 3.02 (1.70 %)News: IEX reported 16.18% YoY increase and flat MoM in volumes trend. Total volumes in May were at 7596 MUs. Day ahead market traded 3173 MUs with average market clearing price of Rs. 6.76. On the volume front, it is a reduction of 27.4% compared to volumes of April. Real time market volumes were at 2319 MUs and increased 36.1% MoM. Term ahead market comprising intra-day, contingency, daily & weekly contracts traded 1189 MUs and recorded 1.5% MoM increase. Green market also traded a cumulative of 642 MUs during May. REC market also saw a volume of 275 MUs in the trading session held on May 25
Views: This is the second consecutive month when volumes were below par. The subdued volumes were mainly due to constraints on supply side and CERC capping DAM and TAM prices which lead to bilateral agreements between buyers and sellers, which, in turn, resulted in lower volumes on power exchanges platform. Although the government is taking ample steps to reduce the demand supply gap amid scorching heatwave and economic activities getting back to normal levels, it looks a bit difficult. This trend should persist for at least a couple more months
Impact: Negative