Latest news with #IEX
&w=3840&q=100)
Business Standard
3 days ago
- Business
- Business Standard
Are we ready to handle market manipulations in electricity derivatives?
With the imminent launch of electricity derivatives in India, regulatory preparedness has become a matter of urgency. The recent Securities and Exchange Board of India (Sebi) order against Jane Street Group (JSG) offers a cautionary tale of strategic exploitation in derivative markets — one that India's electricity sector cannot afford to ignore. The Jane Street case: A wake-up call The JSG case exposed classic intraday manipulation. The group purchased large volumes of BANKNIFTY index and constituent stocks early in the trading day, driving prices upward. Concurrently, it took reverse positions in the options market. Later, they offloaded their holdings, pulling down prices and reaping disproportionate profits in the derivative segment, while absorbing manageable losses in the cash market. This trading pattern, which came to light through a US court case in April 2024, evaded Sebi and exchange surveillance for over 15 months until interim orders were finally issued on July 3, 2025. Notably, the detection did not stem from domestic oversight but through disclosures in litigation abroad. Sebi's timeline illustrates the vulnerability of surveillance systems, even when both cash and derivative markets are governed by the same regulator (Sebi) and the exchange ecosystem is tightly knit (NSE). The strategy deployed by JSG hinged on exploiting illiquidity in the cash segment and leveraging high liquidity in derivatives—particularly BANKNIFTY options around expiry periods. Electricity spot markets: The challenge of dual regulation The electricity market, structured differently, introduces additional layers of complexity. Three power exchanges—Indian Energy Exchange (IEX), Power Exchange India Limited (PXIL), and Hindustan Power Exchange (HPX) — serve primarily the Day Ahead Market (DAM) and Real-Time Market (RTM). IEX dominates both, handling roughly 3.9 per cent and 2.47 per cent of national generation respectively, amounting to just 7 GW and 4.8 GW in traded capacity. These figures do not reflect a truly liquid market. Further complicating matters, derivative contracts will be settled at prices derived from IEX and PXIL — despite PXIL's minimal volumes. In contrast to equities, where Sebi governs both segments, electricity markets have split jurisdiction: the Central Electricity Regulatory Commission (Cerc) oversees spot contracts, while Sebi regulates derivatives. Some of the large power generators individually control substantial capacity. As such, their ability to influence prices in illiquid markets is undeniable, especially since comprehensive trade disclosures aren't mandated under current protocols. Launch of electricity derivatives: Regulatory coordination is key With derivative contracts having debuted on MCX (July 10, 2025) and set to debut on NSE (July 14, 2025), regulatory silos present risks. While volume caps have been prescribed to prevent distortions, these are not fail-proof. Coordination between Sebi and Cerc must be seamless. Miscommunication or lag in action could have ripple effects — raising costs for electricity consumers and undermining market integrity. The JSG episode underscores the need for real-time surveillance, rapid response frameworks, and clear inter-regulatory protocols. If Sebi's mechanisms struggled with manipulations in tightly monitored equity markets, can the electricity sector — divided between two regulators — claim immunity? Time to ringfence and reform India's electricity derivative market is at a formative stage. This moment demands a forward-looking approach. Regulators must not only anticipate the nature of manipulative strategies but act decisively to prevent their execution. Surveillance infrastructure must be upgraded, communication lines clarified, and cross-market behaviour monitored in tandem. Regulatory failures in one segment must not cascade into others. It is imperative for Sebi and Cerc to insulate their constituencies, proactively guard consumer interests, and evolve with the market. While early action may have been missed, the JSG case offers a chance to set the ball rolling before it's too late.
Yahoo
11-07-2025
- Business
- Yahoo
What You Need To Know Ahead of IDEX's Earnings Release
Northbrook, Illinois-based IDEX Corporation (IEX) is an applied solutions company specializing in a range of applications such as fluid and metering technologies, health and science technologies, and fire, safety, and other products. With a market cap of $13.8 billion, IDEX operations span the Americas, Europe, and the Indo-Pacific. The industrial major is expected to release its Q2 results after the market closes on Wednesday, Jul. 30. Ahead of the event, analysts expect IEX to deliver a profit of $1.99 per share, down 3.4% from $2.06 per share reported in the year-ago quarter. On a positive note, the company has surpassed the Street's bottom-line estimates in each of the past four quarters. This Underdog AI Stock Just Got a New Street-High Price Target As Joby Aviation Hits a New 52-Week High, Jim Cramer Says He Won't 'Fight' the Rally Texas Just Passed Quantum Computing Legislation. How Should You Play IONQ Stock Here? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For the full fiscal 2025, analysts expect IEX to report an EPS of $8.21, up 4.1% from $7.89 reported in the previous year. While in fiscal 2026, its earnings are expected to grow 8.3% year-over-year to $8.89 per share. IEX stock has dropped 5.6% over the past 52 weeks, notably underperforming the Industrial Select Sector SPDR Fund's (XLI) 24.1% surge and the S&P 500 Index's ($SPX) 12.3% returns during the same time frame. IDEX's stock prices rose 3.5% in the trading session after the release of its Q1 results on May 1. While the company's organic sales took a slight hit during the quarter, its overall topline inched up 1.7% year-over-year to $814.3 million, surpassing the Street's expectations. Although its adjusted EPS for the quarter dropped 6.9% year-over-year to $1.75, it was 6.7% ahead of the consensus estimates. Moreover, the company's orders touched a record $872 million, boosting investor confidence. The stock holds a consensus 'Moderate Buy' rating overall. Of the 11 analysts covering the stock, opinions include six 'Strong Buys,' one 'Moderate Buy,' and four 'Holds.' Its mean price target of $208.10 indicates a 12.9% upside potential from current price levels. On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
11-07-2025
- Business
- Mint
IEX stock jumps on likely delay of market coupling; focus now on volume and pricing
Indian Energy Exchange (IEX) Ltd stock was in focus this week after it shot up on Wednesday in response to a media report indicating the government had no timeline for its decision on the market coupling of electricity exchanges. The proposal, mooted about two years ago, would reduce the near-monopoly IEX enjoys in electricity trade with an 84% market share. Market coupling refers to the integration of all sale and purchase bids across the three power exchanges, much like combining bids from BSE and NSE, for uniform price discovery through a centralised authority. A report by grid controller of India on the matter is being reviewed by the Central Electricity Regulatory Commission (CERC). While the move may deliver marginal benefits because of inefficiencies in the electricity market, it would diminish the role of individual exchanges and impact longer-term market development. It may have greater impact on IEX than others because of its near monopoly in day ahead and real time market (DAM and RTM) with an almost 99% share, as per CERC data. The term ahead market, where it has a share of about 44%, has more balanced structure. 'We believe that the risk-reward is not in favour of nation-wide implementation of MC in the near future," said a report by JM Financial Institutional Securities Ltd. Summer blues IEX had a subdued June, with trading volume of 10.8 billion units (BU) marking modest growth of 6.5%, as the early monsoon hurt demand. Yet, growth of 20% in the first two months helped June quarter (Q1FY26) volume grow 15%. With greater participation from producers and increasing availability of power, market clearing price (MCP) in RTM fell 20% to ₹3.91 per unit during the quarter. 'The price dip, driven by surplus renewable supply, highlights the need for enhanced storage and grid infrastructure to manage supply-demand mismatches, particularly during evening peak hours," said Incred Research Services Private Ltd. For FY25, average MCP was 15% lower year-on-year at ₹4.47 per unit. The improving pricing efficiency in the market is prompting distribution companies and industrial consumers to procure more through exchanges, which helps IEX. 'We expect the trading volume to grow at a CAGR of 13% during FY25-28, which will drive growth in IEX's revenue and PAT at a CAGR of 16% and 14% respectively," said the JM Financial report. For FY25, the company recorded Ebitda growth of 20% with an Ebitda margin of 85%. Silver lining is green The exchange is seeing high momentum in its newer market segments, green market and renewable energy certificates (RECs). The two accounted for 19% of total traded volumes in FY25, up from 11% in FY24. Volumes in the green market, involving the sale and purchase of renewable energy, grew 51% in Q1FY26, becoming more attractive for consumers with declining prices. RECs are tradable certificates issued by a government entity to a renewable power generator, with 1,000 units of renewable power generation fetching one REC. Discoms buy these to meet their green power obligations. For Q1FY26, RECs recorded 149% volume growth. IEX is also expected to benefit from the launch of electricity derivatives, which should help increase volumes further. The stock is up about 13% so fat this year and trades at 37 times estimated FY26 earnings, as per Bloomberg. For now, the valuation seems to have captured the company's stable outlook adequately.
Reuters
10-07-2025
- Business
- Reuters
Trading giant Virtu backs plan for IEX's proposed options exchange
July 10 (Reuters) - Trading and market making firm Virtu Financial threw its support behind a proposal by IEX to launch a new U.S. options exchange, saying the initiative could promote competition and innovation. In a letter to the Securities and Exchange Commission dated July 9, Virtu called IEX's proposed platform a "well-intentioned" step that could benefit retail investors and enhance transparency. IEX has proposed an options exchange that would introduce a 350-microsecond delay on trades, a speed bump aimed at curbing advantages held by high-frequency traders and leveling the playing field for other market participants. However, the plan has sparked debate. Market maker Citadel Securities and the Securities Industry and Financial Markets Association urged the SEC to reject the proposal, arguing that the speed bump could affect market dynamics and price discovery. Virtu, meanwhile, said it supported efforts that "enhance the investor experience". "We believe that the introduction of new trading venues has the potential to promote competition, foster innovation and possibly deliver better trading outcomes for all market participants," Virtu wrote. Besides Virtu, IEX's proposal has also garnered support from the Chicago Trading Company, All Options USA and HAP Trading. "We appreciate that a broad range of industry participants and market makers are willing to go on the record in support of our options filing, and in particular, the feature that protects market makers from latency arbitrage," IEX's Chief Market Policy Officer John Ramsay said. "Our exchange is designed to foster competition and deliver better prices for investors — a theme that is consistently reflected in their endorsements."
Mint
10-07-2025
- Business
- Mint
Recommended stocks to buy today, 10 July, by India's leading market experts
Indian benchmark indices ended lower on 9 July after a choppy, range-bound session, with late selling pressure dragging the Nifty 50 below the 25,500 mark. Investor sentiment remained cautious ahead of US President Trump's expected trade announcements and the onset of the earnings season. The Nifty 50 slipped 46.4 points to close at 25,476.10, while the Sensex shed 176 points to end at 83,536.08. Broader markets outperformed slightly, and defensives found favour amid the uncertainty. Sectoral trends were mixed, with gains in autos and FMCG offset by weakness in technology, metals, and real estate. Two stock recommendations by MarketSmith India for 10 July: Why it is recommended: Market leadership and scale, business innovation and diversification Key metrics: P/E: NA, 52-week high: ₹ 1,748, volume: ₹ 59.18 crore Technical analysis: Reclaimed its 100-DMA on above average volume Risk factors: Content volatility and Consumer footfalls, intensifying competition Buy at: ₹ 1,001.8 Target price: ₹ 1,120 in two to three months Stop loss: ₹ 950 2. Buy: Aegis Vopak Terminals Ltd (current price: ₹260) Why it is recommended: Strategic JV with Royal Vopak, growing demand for LPG and chemicals Key metrics: P/E: 670.20, 52-week high: ₹ 269, volume: ₹72.32crore Technical analysis: Downward-sloping trendline breakout Risk factors: High dependence on a few clients, volatility in Oil and Gas imports Buy at: ₹ 255 Target price: ₹ 310 in two to three months Stop loss: ₹ 240 Top 3 stocks recommended by Ankush Bajaj for 10 July Why it's recommended: Divi's Laboratories is showing strong upward momentum, supported by a robust technical setup. The stock is trading well above all its key moving averages, confirming a sustained bullish trend. Thedaily RSI stands at 71, reflecting strong momentum while still sustaining in the bullish territory without being excessively overbought. The overall structure points to continued upward movement as the stock maintains higher lows and strong buying interest on dips. Key metrics: Support (stop loss): ₹6,910 Pattern: Momentum-driven breakout continuation above major averages RSI: 71 (indicating strong bullish momentum) Technical analysis: The stock remains in a powerful uptrend and is holding above its key short- and long-term moving averages, reinforcing trend strength. With consistent demand and positive price structure, the next upside move toward ₹7,125– ₹7,140 looks well supported. Traders are advised to maintain positions as long as the price holds above the ₹6,910 support level. Risk factors: Any close below ₹6,910 would weaken the current setup. Watch for signs of fatigue or low-volume rallies, which may hint at short-term exhaustion. Buy at: ₹6,983 Target price: ₹7,125– ₹7,140 Stop loss: ₹6,910 2. Buy: Indian Energy Exchange (IEX) — Current Price: ₹208 Why it's recommended: IEX has recently broken out of a triangle pattern on the lower timeframes, suggesting a renewed push higher after a phase of consolidation. Thedaily RSI is at 69, just shy of overbought levels, confirming strong momentum. This combination of breakout and positive momentum increases the probability of sustained gains in the near term. Key metrics: Support (stop loss): ₹202, Pattern: Triangle breakout on intraday charts RSI: 69 (bullish zone) Technical analysis: The breakout from the triangle pattern is supported by improving volumes and strong follow-through. The price action suggests the potential for a move toward ₹220– ₹222 in the short term. As long as the stock sustains above ₹202, the bullish momentum is expected to continue. Risk factors: A fall below ₹202 may invalidate the breakout structure. Traders should also monitor whether the breakout is supported by rising volumes. Buy at: ₹208 Target price: ₹220– ₹222 Stop loss: ₹202 IIFL Finance — Current Price: ₹508.55 Why it's recommended: IIFL Finance has shown a sharp upward move afterbreaking out of a rectangle pattern on the 15-minute chart, indicating a fresh bullish phase. Thedaily RSI is elevated at 72, which confirms strong buying interest and a possible continuation of the trend. The overall structure supports a short-term rally with minor dips being actively bought into. Key metrics: Support (stop loss): ₹498 Pattern: Rectangle breakout on 15-min chart RSI: 72 (strong bullish momentum) Technical analysis: The breakout has occurred with clean price action, and follow-through buying suggests higher levels are likely. With the bullish setup confirmed and momentum indicators supporting the move, the stock may advance toward ₹530– ₹532 in the short term. A close below ₹498 would weaken the trend. Risk factors: Watch for volume tapering or failure to hold above ₹505 levels, which may invite quick profit-taking. Buy at: ₹508.55 Target price: ₹530– ₹532 Stop loss: ₹498 Two stocks to buy today, recommended by Trade Brains Portal Target price: ₹ 570 in 12 Months Stop-loss: ₹ 380 Why it's recommended: Oil India Limited (OIL), a Maharatna PSU & Integrated Energy Company, was founded in 1889. It is the second-largest state-owned oil and gas company in India and a fully integrated exploration and production (E&P) company. Oil India Ltd is involved in the exploration, development, and production of crude oil and natural gas, as well as the transportation of crude oil and the production of liquefied petroleum gas (LPG). The company has 62 operated blocks across India with a total acreage (including non-operated blocks) of 107K+ Sq. Km and the international E&P portfolio of 10 assets across 7 countries. As of FY25, it produced domestic oil of 3.46 MMT and a domestic gas production of 3.25 MMTOE. It has made 48 major installations for crude oil with delivery pipelines over 270 km. Moreover, internationally, it produced oil of 1.19 MMT and recorded an international gas production of 0.91 MMTOE as of FY25. In FY25, the company reported revenue of about ₹37,830 crore, which is 0.5% higher than FY oil revenue stood at ₹15,741 crore, while natural gas revenue stood at ₹5,514 EBITDA witnessed ₹12,824 crore, and the PAT is ₹7,039 crore. The company has been consistently improving its operating margin from 26.8% in FY22 to 27.6% in the upstream segment, the total hydrocarbon production rose to 6.7 million tons of oil and oil equivalent. In FY25, the company did a capex of ₹8,467 crore. The company has successfully improved its debt leverage from 0.6 in FY21 to 0.27 in FY25. The company distributed a final dividend of ₹1.50 per share, bringing a full-year payout of ₹11.5 per share. The company has been consistently giving dividends with a payout ratio of over 30% over the last 3 years. By 2040, the company looks at refining capacity from a demand point of view, about 440 million metric tons, and aims to increase its capacity to 90 million metric tons from 30 million metric tons currently. Oil India has secured about 40,000 sq. km. of area as part of our petroleum exploration licence and has access to 4,800 sq. km. of petroleum mining lease that is with Oil India under nomination acreage. Risk factors: It operates in a competitive environment and is highly capital-intensive in nature. Moreover, it is also exposed to the cyclicality of the E&P industry, which requires continuous large investments and a high gestation period. It is susceptible to significant geopolitical risks, as some of the overseas reserves are in countries that have political instability. 2. Thermax Ltd - Current price: ₹ 3,440 Target price: ₹ 4,225 in 12-14 Months Stop-loss: ₹ 3,045 Why it's recommended: Thermax Ltd. is a leading Indian engineering company that provides energy and environmental solutions, founded in 1966. It offers integrated services in heating, cooling, power, water treatment, air pollution control, and specialty chemicals, promoting clean air, energy, and water. Thermax operates in over 90 countries, with 34 international and 22 domestic offices, 14 manufacturing facilities (10 in India and 4 overseas), and more than 45 subsidiaries. Its global service network spans Asia, Southeast Asia, the Middle East, Africa, Europe, and the Americas, supported by 7,854 company has a total order book of ₹10,693 crore, up 6% YoY compared to ₹10,111 crore in FY24, which has been growing at 15% CAGR over the last 5 years. The company reported an operating revenue of ₹10,389 crore in FY25, which surged 11% compared to ₹9,323 crore in FY24. It has been growing at 17% CAGR over the last 5 years. Profit after tax stood at ₹627 crore, which has been growing consistently at 25% CAGR over the past 5 years. Moreover, international revenue stood at ₹2,324 crore, growing consistently at 7% CAGR over the last 5 years. Additionally, in the segmental revenue, the Industrial Products rose by 12%, Industrial Infra was up by 6%, Green Solutions was up by 36%, and the Chemical segment grew by 15% YoY in FY25. According to management guidance, EBITDA margins can cross double digits in FY26. The company entered a major strategic partnership with UK-based Vebro Polymers to address India's industrial and commercial flooring needs. The company also made a partnership with Oswaldo Cruz Quimica, a Latin American company, to manufacture and supply high-performance resins and polymers. In addition, the company expects to execute a ₹315 crore order in Bio-CNG by Q3 FY26 and an FGD order of ₹467 crore, of which ₹350 crore is expected to be executed by FY26, and ₹100 crore can be executed by FY27. Risk factors: The company is susceptible to the cyclicality of the engineering and capital goods industry due to a slowdown in overall infrastructure spending. Due to international exposure, the company is also exposed to fluctuations in commodity prices. It also faces intense competition in segments like low-capacity boilers and packaged water treatment plants. Three stocks to buy or sell, recommended by NeoTrader's Raja Venkatraman: Why it's recommended: The Indian healthcare sector is expected to reach $372 billion by 2022, driven by rising incomes, greater health awareness, lifestyle diseases and increasing access to insurance. This counter has simultaneously been showing some improvement after the strong decline that it had gone through, the prices started bottoming in May 2025. After a push above the clouds, we can see that the stock is set for a turnaround. Go long. Key metrics: P/E: 31.24 | 52-week high: ₹1,044 | Volume: 201.51K. Technical analysis: Support at ₹115 | Resistance at ₹190. Risk factors: Market volatility and sector-wide fluctuations in geopolitical news could impact returns. Buy at: CMP and dips to ₹138. Target price: ₹165-173 in 1 month. Stop loss: ₹132. 2. Apollo Tyres Ltd (Cmp ₹473.90) Why it's recommended: APOLLOTYRES after some disappointing numbers quickly priced in the negative newsflow and has been on a steady upward drive in the last few weeks. The strong showing has now translated into a potential upward possibility in the next few weeks. Can look to go long. Key metrics: P/E: 47.83 | 52-week high: ₹584.90 | Volume: 2.04M. Technical analysis: Support at ₹440, resistance at ₹680. Risk factors: Competition from streaming platforms and changing consumer preferences. Buy at: CMP and dips to ₹460. Target price: ₹515-530 in 1 month. Stop loss: ₹450. 3. Pricol Ltd (Cmp ₹468.35) Why it's recommended: The counter has been under intense selling pressure for more than five months. The prices hit some resistance zone from the start of the year, around ₹460, despite staging a strong cloud breakout, indicating that the positive turnaround is emerging. After the recent test of the TS & KS Bands. With a strong closing on Wednesday, we can look at some positive vibes emerging. Key metrics: P/E: 39.92 | 52-week high: ₹598.80 | Volume: 528.82K. Technical analysis: Support at ₹400, resistance at ₹530. Risk factors: Supplier retention and potential customer acquisition challenges. Buy at: Above ₹470 and dips to ₹450. Target price: ₹530 in 1 month. Stop loss: ₹440. Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729. Raja Venkatraman is the co-founder of NeoTrader. His Sebi-registered research analyst registration no. is INH000016223. Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441. MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. Its trade name is William O'Neil India Pvt. Ltd, and its Sebi registration number is INH000015543. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
