Swiggy Shares Pare Gains Ahead of MSCI Index Exit

Swiggy shares ended 2.5% higher on Friday after giving up much of their earlier gains, as investors prepared for the food delivery company’s removal from MSCI indexes. The stock had climbed as much as 5.61% during the session before index-tracking funds adjusted their portfolios near the market close.

Swiggy was estimated to face around $360 million in passive outflows, according to Nuvama Alternative & Quantitative Research. The shares will be removed from MSCI’s Global Standard and Mid-cap indexes from Monday, adding to pressure after the company was placed on a foreign ownership red-flag list as overseas holdings approached the regulatory limit.

The foreign investment cap was cut to 49.5% from 100% after shareholders approved Swiggy’s move toward an inventory-based model. The tighter ownership limit and MSCI deletion have raised concerns over liquidity and volatility. Swiggy shares have fallen 28.5% so far this year, while the Nifty Mid-cap 100 has gained 4.3%.

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