Swiggy faces MSCI index removal from September 7, 2026

Market estimates indicate that passive funds tracking these indices could trigger outflows of up to $340 million following the removal. This development adds to Swiggy’s existing challenges, with the stock having declined nearly 37% since October 2025 and trading around ₹267 per share.

The index removal coincides with Swiggy’s efforts to comply with Indian ownership norms. The company adjusted its foreign holding cap to 49.5% from 50.02% in June 2026 to meet the threshold of being classified as an Indian-owned and controlled entity, which requires foreign ownership below 50% and majority Indian representation on the board. A resolution to this effect was approved at its annual general meeting on August 18, 2026.

Brokerage Jefferies India warned in an August 19 report that such foreign ownership caps could lead to short-term outflows from passive funds replicating MSCI and FTSE indices, though it noted that domestic investors might offset some of the selling if Swiggy’s fundamentals improve.

Swiggy’s struggles contrast with the performance of rival Eternal, which operates Zomato and Blinkit. Eternal imposed a similar foreign ownership restriction in April 2025 and has since seen its stock rise 40%, supported by improving financials. In 2026 alone, Eternal’s shares are up 17% and have trended upward since March.

In the quick-commerce space, Blinkit holds a 44% market share after processing around 900 million orders in FY26, while Zepto and Swiggy Instamart account for 25% and 20% respectively, according to a report by Smart Growth in a Fast Market by Infisum cited by ANI.

Swiggy’s stock has seen intermittent recovery attempts, but gains have been short-lived. Over the past 11 months, it has fallen in eight months, with January 2026 recording the steepest monthly drop of 20%. So far in 2026, the stock is down 31%, extending the 30% decline recorded in 2025.