Eternal's share price fluctuates with foreign ownership cap news

Eternal's stock price experienced volatility on Monday after the company announced a cap on foreign shareholding, potentially impacting its position in global market indices. The share price initially dropped but recovered, closing up slightly. The company, formerly known as Zomato, aims to maintain its status as an Indian-Owned-and-Controlled Entity (IOCC) by limiting foreign ownership to 49.5%. This move allows its quick commerce arm, Blinkit, to transition to an inventory-led model, expanding its product offerings. Analysts predict the share cap could reduce Eternal's weight in indices like MSCI and FTSE, potentially leading to outflows. While short-term price corrections are expected, long-term derating risks are considered minimal by some analysts.