Archive · 3 Sep 2026
Swiggy Shares Fall Again After MSCI Index Removal Announcement
Swiggy’s stock price fell for the second day in a row.
This happened after MSCI said Swiggy would be removed from two important stock-market indexes.
Some investment funds follow these indexes and may have to sell Swiggy shares.
Analysts estimate that this selling could total as much as $340 million.
Swiggy was removed after changing its foreign ownership limit to meet Indian ownership rules.
The company’s shares have already fallen sharply over the past year.
Jefferies India said the index change could hurt the stock in the short term.
It also said Indian investors might help support the shares if Swiggy’s business performance improves.
Swiggy shares fell more than 2.30% on the NSE on Thursday, their second consecutive daily decline.
The stock dropped 4% on Wednesday to ₹264.55, bringing its two-day loss to about 6%.
MSCI will remove Swiggy from its Global Standard and Mid Cap indices on September 7, roughly a year after its inclusion.
The decline reduced Swiggy’s market capitalisation by nearly ₹5,000 crore to ₹77,813 crore.
Market estimates suggest index-tracking funds could generate passive outflows of up to $340 million from Swiggy.
- Who
- Swiggy, MSCI, index-tracking funds, and investors.
- What
- Swiggy’s share price declined after MSCI announced its removal from the MSCI Global Standard Index and MSCI Mid Cap Index.
- When
- The announcement was made on Wednesday, September 2; the removal is scheduled for September 7, and shares fell again on Thursday.
- Where
- Trading took place on the NSE; the index changes affect global funds tracking MSCI benchmarks.
- Why
- MSCI’s removal followed Swiggy’s changes to its foreign ownership limit and Indian ownership structure, which could prompt index-linked fund selling.
Index-Driven Selling Risks
Potential Fundamental Support
Near-term share-price impact
Index-Driven Selling Risks
MSCI’s deletion may force funds that track its benchmarks to sell Swiggy shares, creating further short-term pressure.
Potential Fundamental Support
Jefferies India said domestic investors could potentially offset foreign selling if Swiggy’s underlying fundamentals continue to strengthen.
Ownership restriction precedent
Index-Driven Selling Risks
Swiggy’s restriction on foreign holdings was described as a near-term negative that could trigger passive outflows from overseas funds tracking MSCI and FTSE indices.
Potential Fundamental Support
Eternal, the parent company of Zomato and Blinkit, introduced a similar restriction in April 2025, and its shares subsequently gained around 40% as financial performance improved.
- Thursday opening price
- ₹265.35 on NSE
- Previous close
- ₹267.70
- Wednesday close
- ₹264.55, after a 4% decline
- Market capitalisation
- ₹77,813 crore after losing nearly ₹5,000 crore
- Estimated passive outflows
- Up to $340 million
- One-year share performance
- Down 39%
- Year-to-date performance
- Down more than 33%