Eternal slumps ahead of FPI selloff after lowering investment limit

Eternal stock fell nearly 5% as passive funds prepare to sell over Rs 7,500 crore worth of shares following a cut in the FPI investment limit to 49.5%

Shares of Eternal (formerly Zomato) dropped almost 5 per cent on Monday ahead of an expected selloff by passive funds tracking MSCI and FTSE global indices. The selloff is driven by Eternal’s decision to lower the foreign portfolio investor (FPI) investment limit from 75 per cent to 49.5 per cent.

 

Shares of the company ended at Rs 226.7, down 4.6 per cent on the National Stock Exchange, where shares worth Rs 2,034 crore were traded.

 

According to Nuvama Alternative & Quantitative Research, funds tracking FTSE indices are expected to sell 109 million shares worth roughly Rs2,500 crore on Tuesday. Moreover,