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Electricity Futures Spark Strong Start on NSE with Rs177 Cr Trade on First Day

The National Stock Exchange (NSE) marked a successful launch of its monthly electricity futures contracts on July 14, with over 8,100 contracts traded by 7 p.m., amounting to Rs177.24 crore. The first trade opened at Rs4,430/MWh, and prices hovered around Rs4,364/MWh, slightly above the spot market rate of Rs4,249/MWh. Participants included power generators, DISCOMs, large industrial users, and market intermediaries.

These futures aim to help power sector players hedge against price volatility and support long-term planning, aligning with India's broader energy transition goals. The trading volume on NSE surpassed that of the Multi Commodity Exchange (MCX), which traded only 2,606 contracts worth Rs57.52 crore on July 10 and 1,633 contracts worth Rs36.41 crore on July 11.

NSE officials emphasized that the current focus is on market development rather than immediate volume growth. The integrated platform is expected to enhance margin efficiency and ease of use for participants. Plans are also underway to introduce additional long-duration electricity derivatives. This milestone marks a significant step in building a mature and transparent energy derivatives market in India.