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HomeMarket NewsEternal shares brace for passive outflows worth nearly $900 million this week
IIFL Capital is expecting the reduction in Eternal's weightage on the FTSE index to result in outflows of $380 million on Tuesday, May 27.
Shares of Eternal Ltd. are trading with losses of around 4% on Monday, May 26, as the parent company of food delivery aggregator Zomato, is bracing for passive outflows this week to the tune of $900 million.
Both MSCI and FTSE, of which Eternal is a part of, have reduced their weightage on the stock in their respective indices. This is following the reduction in Eternal's Foreign Ownership Limit (FOL) to 49.5% from 100%.
The move to cap foreign shareholding will help Eternal maintain the Indian ownership classification of the company.
IIFL Capital is expecting the reduction in Eternal's weightage on the FTSE index to result in outflows of $380 million on Tuesday, May 27.
The brokerage is also anticipating further outflows worth $460 million when the MSCI rebalancing of Eternal's weightage takes place on May 30.
Nuvama Alternative & Quantitative Research is expecting outflows worth nearly $300 million on May 27. It said that the weightage of Eternal was halved by FTSE in one go, which is a surprise move, considering it is generally done in a staggered fashion.
For the MSCI rebalancing, Nuvama Alternative sees outflows to the tune of $520 million. This will take place on May 30.
Shares of Eternal are trading 3.2% lower on Monday at ₹230. The stock is still up 9% so far in 2025.
