Latest news with #PraveenaRai


Reuters
08-07-2025
- Business
- Reuters
India's MCX to launch electricity futures as hedge against weather-driven demand shifts
MUMBAI, July 8 (Reuters) - India's Multi Commodity Exchange ( opens new tab will launch the country's first electricity futures contracts on Thursday, providing power generators, distribution companies, and large industrial consumers with a tool to hedge their risks. The exchange will initially launch cash-settled contracts for the current and next three-month periods, but they will subsequently be available for all 12 calendar months, MCX said in a statement on Tuesday. The exchange's managing director Praveena Rai said the goal is to address the sector's needs, deepen energy markets, and support sustainable, market-driven power pricing. Weather has always heavily affected India's power demand, with needs peaking during summer heat and easing with the moderate temperatures accompanying the seasonal monsoon rains. However, increasingly erratic weather patterns, with more heatwaves and untimely rainfall, have made demand harder to predict. Currently, Indian utilities rely mainly on long-term power purchase agreements spanning up to 25 years for base load requirements, supplemented with short-term purchases through power exchanges for peak demand. Expensive long-term power purchases, subsidised supply, and electricity losses due to poor infrastructure, however, have left India's distribution companies with debts of around $9.5 billion, according to the government. India's National Stock Exchange will open trading of similar monthly electricity futures from July 14, the bourse operator said last week.
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Business Standard
08-07-2025
- Business
- Business Standard
MCX to launch India's first electricity futures contracts on July 10
India's Multi Commodity Exchange will launch the country's first electricity futures contracts on Thursday, providing power generators, distribution companies, and large industrial consumers with a tool to hedge their risks. The exchange will initially launch cash-settled contracts for the current and next three-month periods, but they will subsequently be available for all 12 calendar months, MCX said in a statement on Tuesday. The exchange's managing director Praveena Rai said the goal is to address the sector's needs, deepen energy markets, and support sustainable, market-driven power pricing. Weather has always heavily affected India's power demand, with needs peaking during summer heat and easing with the moderate temperatures accompanying the seasonal monsoon rains. However, increasingly erratic weather patterns, with more heatwaves and untimely rainfall, have made demand harder to predict. Currently, Indian utilities rely mainly on long-term power purchase agreements spanning up to 25 years for base load requirements, supplemented with short-term purchases through power exchanges for peak demand. Expensive long-term power purchases, subsidised supply, and electricity losses due to poor infrastructure, however, have left India's distribution companies with debts of around $9.5 billion, according to the government.


Business Recorder
08-07-2025
- Business
- Business Recorder
India's MCX to launch electricity futures as hedge against weather-driven demand shifts
MUMBAI: India's Multi Commodity Exchange will launch the country's first electricity futures contracts on Thursday, providing power generators, distribution companies, and large industrial consumers with a tool to hedge their risks. The exchange will initially launch cash-settled contracts for the current and next three-month periods, but they will subsequently be available for all 12 calendar months, MCX said in a statement on Tuesday. The exchange's managing director Praveena Rai said the goal is to address the sector's needs, deepen energy markets, and support sustainable, market-driven power pricing. Weather has always heavily affected India's power demand, with needs peaking during summer heat and easing with the moderate temperatures accompanying the seasonal monsoon rains. However, increasingly erratic weather patterns, with more heatwaves and untimely rainfall, have made demand harder to predict. Currently, Indian utilities rely mainly on long-term power purchase agreements spanning up to 25 years for base load requirements, supplemented with short-term purchases through power exchanges for peak demand. Expensive long-term power purchases, subsidised supply, and electricity losses due to poor infrastructure, however, have left India's distribution companies with debts of around $9.5 billion, according to the government. India's National Stock Exchange will open trading of similar monthly electricity futures from July 14, the bourse operator said last week.


Economic Times
17-06-2025
- Business
- Economic Times
MCX shares hit record high on report of electricity derivatives launch this year
Live Events MCX share price target (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Multi Commodity Exchange of India (MCX) rose 2.5% on Tuesday to hit a fresh all-time high of Rs 8,021.5 on the NSE , following a Bloomberg report suggesting the exchange may roll out electricity derivatives later this this month, MCX confirmed that it had received approval from SEBI to launch electricity derivatives. According to Bloomberg, people familiar with the matter indicated that the new contracts are likely to go live within the a statement on June 9, MCX Managing Director and CEO Praveena Rai said the move would enable power distribution companies and large electricity consumers to better hedge price risks in an increasingly dynamic energy landscape.'These contracts will offer participants a reliable, transparent, and regulated platform to manage power price risks, which are becoming more dynamic due to renewables and market-based reforms,' Rai also highlighted the growing importance of such instruments in light of India's expanding focus on renewable energy and open access power markets, calling electricity derivatives a "vital bridge between the physical and financial sectors."According to Trendlyne, the average target price for MCX is Rs 6,133, indicating a potential downside of around 23% from current levels. Of the eight analysts tracking the stock, the consensus rating remains 'Buy'.On the technical front, the Relative Strength Index (RSI) stands at 73, suggesting the stock is in overbought territory, which could lead to a short-term pullback. Meanwhile, the MACD is at 372.8, trading above both its centerline and signal line — a bullish Read: 6 IPOs set to open this week. Check latest GMP trends MCX shares have rallied 60% in the past three months and delivered nearly 400% returns over the past two years. The company's market capitalisation now stands at approximately Rs 40,441 crore.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)


Time of India
17-06-2025
- Business
- Time of India
MCX shares hit record high on report of electricity derivatives launch this year
Live Events MCX share price target (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Multi Commodity Exchange of India (MCX) rose 2.5% on Tuesday to hit a fresh all-time high of Rs 8,021.5 on the NSE , following a Bloomberg report suggesting the exchange may roll out electricity derivatives later this this month, MCX confirmed that it had received approval from SEBI to launch electricity derivatives. According to Bloomberg, people familiar with the matter indicated that the new contracts are likely to go live within the a statement on June 9, MCX Managing Director and CEO Praveena Rai said the move would enable power distribution companies and large electricity consumers to better hedge price risks in an increasingly dynamic energy landscape.'These contracts will offer participants a reliable, transparent, and regulated platform to manage power price risks, which are becoming more dynamic due to renewables and market-based reforms,' Rai also highlighted the growing importance of such instruments in light of India's expanding focus on renewable energy and open access power markets, calling electricity derivatives a "vital bridge between the physical and financial sectors."According to Trendlyne, the average target price for MCX is Rs 6,133, indicating a potential downside of around 23% from current levels. Of the eight analysts tracking the stock, the consensus rating remains 'Buy'.On the technical front, the Relative Strength Index (RSI) stands at 73, suggesting the stock is in overbought territory, which could lead to a short-term pullback. Meanwhile, the MACD is at 372.8, trading above both its centerline and signal line — a bullish Read: 6 IPOs set to open this week. Check latest GMP trends MCX shares have rallied 60% in the past three months and delivered nearly 400% returns over the past two years. The company's market capitalisation now stands at approximately Rs 40,441 crore.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)