IEX surged in trade today: What fuelled power exchange stock?

IEX share price surged in trade on Friday as power exchanges look set to benefit from a new policy regime. The government is looking to implement the first phase of market-based economic dispatch (MBED) around April of 2022. One of the key measures as far as this aspect is concerned is that it is a short-term power trading mechanism in which the generators with the lowest costs will be able to supply power first.

Now, two players can take advantage of this. One is, of course, power exchanges, because this will also mean an increase in volumes on the power exchanges themselves, and the volumes transacted are expected to go up.

The second benefit comes to those with low costs in terms of generation and that will include names like PTC India. That is also the reason why we are seeing substantial movement in a lot of these stocks.