Swiggy share price under pressure after NSDL red flag, MSCI, FTSE shake-up – What’s next for investors? Should you BUY, SELL or HOLD? – Markets

New-age stocks have been in the limelight in recent times, with several of them outperforming established blue-chip companies. However, the trend has not been uniform across the new-age space.

Swiggy is one such stock that has remained under pressure and failed to deliver positive returns across various time frames. According to data available on the NSE, the stock has declined around 38 per cent since its listing. While the losses have moderated slightly over shorter periods, the overall performance remains weak.

The concerns intensified further after MSCI announced that it would delete the e-commerce company from its Global Standard Indexes and Mid Cap Index, effective September 7, 2026. Alongside MSCI, FTSE is also expected to reduce Swiggy’s investability weighting in tranches.

Following these developments, Swiggy shares have come under pressure, declining more than 6.6 per cent over the last three sessions. However, the stock has shown some recovery after the recent decline.

Nuvama on Swiggy

The combined impact of the MSCI and FTSE changes is estimated at around USD 460 million, according to brokerage firm Nuvama. Based on the current headwinds facing the stock, Nuvama expects Swiggy shares to see a further 4-5 per cent downside in the near term.

However, the brokerage noted that lower levels could attract buying support from long-only investors as the stock’s valuations become more comfortable.

Swiggy currently carries a weight of around 30 basis points in the MSCI Standard Index. A potential deletion from the index could trigger passive outflows of around USD 340 million, Nuvama estimates.

This is equivalent to approximately 125 million shares, or around five to six days of Swiggy’s average traded volume, potentially adding to near-term pressure on the stock.

Positives for Swiggy

Despite these near-term headwinds, Swiggy has also been pursuing strategic initiatives and partnerships that could provide some support to the stock over the longer term.

One such development was Swiggy’s strategic collaboration with Hero MotoCorp, aimed at helping delivery partners purchase bikes and scooters through exclusive pricing and attractive financing options available via the Swiggy app.

The company has also outlined plans to expand the use of artificial intelligence across key areas of its business, including demand forecasting, fulfilment, partner management, monetisation and internal operations, as part of its long-term strategy.

Additionally, Swiggy participated in JioStar’s content-commerce initiative through integrations such as Swiggy x IPL on JioHotstar. During the IPL, 69 million consumers experienced Swiggy on the platform, highlighting the company’s efforts to expand its reach through content and commerce integrations.

On foreign investor flows into the stock, Jain expects foreign investor demand to remain constrained as exchange-based buying faces restrictions, while forced passive outflows may increasingly be absorbed by domestic institutional investors.

Swiggy: Support and Resistance Levels

From a technical perspective, the stock has fallen sharply from its historical peak of around Rs 600-620 to approximately Rs 260. Jain has identified the following key levels for the stock.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)