Eternal’s weightage is set to be raised in the MSCI Standard Index, resulting in significant inflows for the stock.
As per Nuvama Alternative and Quantitative Research, as a result of Eternal’s weightage being increased in the MSCI Standard Index, it could result in potential inflows of $674 million for 205 million shares.
The MSCI rebalancing exercise will happen in the last few minutes of trade. Apart from Eternal likely to witness increase in weightage, four stocks, Laurus Labs, Adani Energy, Lenskart Solutons and Groww’s parent Billionbrains Garage Ventures, will be included in the MSCI Standard Index and are likely to see potential inflows between $250 million to $400 million as well.
On the flip side, stocks like Balkrishna Industries, Astral, and SBI Card will be excluded from the index.
Eternal reported its first quarter earnings last month. Its food delivery net order value (NOV) increased 20%, which was at the higher end of the 18% – 20% estimate. The quick commerce business, which is also known as Blinkit, witnessed NOV growth of 86%, higher than estimates of 20% to 25% growth.
Shares of Eternal are off the lows of the day, currently trading 0.1% lower at ₹327.5. The stock has risen 9% so far in the month of August, extending its year-to-date advance to 15%.Also Read: Northern ARC Capital shares worth ₹308 crore change hands in block deal; Stock jumps over 9%
