It appears that Swiggy shareholders could face further pain in the share price as global index provider MSCI on Wednesday, 2 September, announced the removal of the food delivery platform from its flagship MSCI Global Standard Index and MSCI Mid Cap Index, just a year after its inclusion.
Swiggy shares closed 2.65% lower in Wednesday’s trade following media reports about the potential deletion. CNBC-TV18 later reported that MSCI had announced Swiggy’s removal, effective September 7, 2026.
The deletion could trigger selling by funds that track MSCI indices. Market estimates suggest that Swiggy could see passive outflows of up to $340 million following its removal. The food delivery company was added to the indices in August 2025.
Why Swiggy’s MSCI removal could trigger passive outflows
The development comes after a Swiggy resolution enabling the company to become an Indian-owned and controlled company was approved at its annual general meeting on August 18.
To qualify as an Indian-owned and controlled company, foreign ownership must remain below 50%, while a majority of board representation must comprise resident Indians. Swiggy lowered the cap on foreign holdings to 49.5% from 50.02% in June.
Jefferies India said in a report dated August 19 that capping foreign holdings could lead to passive outflows from foreign funds that replicate the MSCI and FTSE indices. The brokerage described this as a short-term negative but noted that domestic investors could make up for foreign fund outflows if Swiggy’s fundamentals improve.
Eternal, which owns and operates Zomato and Blinkit, imposed a similar foreign ownership restriction in April 2025. Its stock has since advanced 40%, supported by improving financial performance, offering a potential precedent for Swiggy as it navigates the near-term impact of index-related outflows.
In the quick-commerce segment, Blinkit holds the largest market share at 44%, having processed around 900 million orders in FY26, ANI reported, citing a report by Smart Growth in a Fast Market by Infisum. At the same time, Zepto and Swiggy Instamart account for 25% and 20%, respectively.
Swiggy shares remain in deep red
Swiggy shares have struggled to gain traction on exchanges, remaining under sustained selling pressure since October 2025. The stock has lost nearly 37% of its value so far, falling to around ₹267 apiece.
While the stock has attempted several recoveries, these rebounds have proved short-lived. Over the past 11 months, the stock has recorded losses in eight months, with January 2026 emerging as the biggest monthly drag after a decline of 20%.
So far in 2026, Swiggy shares are down 31%, adding to the 30% decline recorded in 2025.
While Swiggy continues to struggle for traction, its rival Eternal has rewarded shareholders with healthy returns. Eternal’s shares have gained 17% so far in 2026 and have maintained a strong upward trend since March 2026.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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