Eternal Jumps as Investors Bet on MSCI Weight Upgrade

Eternal Shares: The shares of Eternal, parent to food delivery app Zomato, rose by more than 4% on 13th January, after the company’s current shareholding pattern revealed an increase in foreign headroom, which restored hopes of an MSCI weightage upgrade.

The stock touched a near one-month high of ₹297.30 during early trade on Tuesday, with market participants factoring in the possibility of passive foreign inflows.

Foreign Headroom Boost Sparks MSCI Optimism

Moreover, as CNBC-TV18 reported, Eternal Foreign Headroom has now risen to over 25% due to the latest shareholding pattern made available by the company for the October to December period of FY26.

It is currently assigned half-weight in the MSCI index due to limited foreign headroom in the past. Analysts note that the current rise may make Eternal eligible for full weighting by MSCI. Any changes can be reflected in the February MSCI Review. An analyst note, quoted by the business channel, also added that this could trigger passive investment inflows potentially reaching $390 million.

Recent Stock Performance

Despite recent volatility, Eternal’s stock has shown improving momentum:

• Past 5 days: +4%
• Past 1 month: +8%
• Previous 1-month correction: ~2% decline

The rebound highlights renewed investor confidence amid expectations of index-linked buying.

Why MSCI Weightage Matters

• The rebound is highlighting renewed investor confidence in expectations for index-linked buying.
• MSCI's indices are tracked by large global passive funds.
• An increase in weightage usually entails the following
• Automatic purchases by international index funds
• Liquidity that's improved, Stronger institutional participation

Disclaimer:

The views and investment opinions quoted are those of market experts and do not necessarily reflect the views of the platform. Investors are advised to conduct their own analysis before making investment decisions.