Small-cap stock PTC India rallied nearly 9% in intraday deals on Thursday, July 24, as investors cheered the power regulator’s decision to implement market coupling from next year onwards. While this move elicited a sharp drop in IEX share price, which entered into a free fall, it gave PTC India investors a reason to cheer.
PTC India share price jumped as much as 8.80% on the BSE to ₹206.90 apiece in intraday deals today. This rally holds prominence as it comes despite a crash in the Indian stock market, as Sensex and Nifty lost nearly 0.70% each.
Why is PTC India stock rising amid fall in IEX shares?
According to analysts, IEX’s loss is PTC India’s gain!
The latest regulations introduced by the Central Electricity Regulatory Commission (CERC) are expected to impact the market dominance of the Indian Energy Exchange (IEX), contributing to the recent decline in its stock price. However, these changes could benefit competitors such as Hindustan Power Exchange, which is well-positioned to gain market share. This development is positive news for PTC India shareholders, as the company holds a significant stake in Hindustan Power Exchange alongside BSE and ICICI Bank.
Power Exchange of India is another player in the segment, promoted by NSE and NCDEX.
“PTC India can be a significant beneficiary of this regulation going ahead because of its smaller size, the power exchange market share gain could add significant value to its market cap,” said Avinash Gorakshkar, a SEBI-registered fundamental analyst.
IEX currently holds an 85% market share.
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