Swiggy shares plunged 4% on Wednesday, extending losses to 6% over two sessions and wiping out nearly ₹5,000 crore from its market capitalisation. According to The Economic Times, the stock dropped to ₹264.55 apiece, the lowest level seen by the stock since late July. The food delivery company's market capitalisation has dropped to ₹77,813 crore, reflecting sustained investor concerns over potential foreign outflows following its exclusion from major indices.
Swiggy's shares have entered the NSDL red-flag list after foreign ownership moved within 3% of the applicable FPI limit on September 1. As reported by The Economic Times, according to the official NSDL red-flag list, foreign investors can now hold a maximum of 2.8 crore Swiggy shares. Jefferies explained that stocks with a cap on foreign ownership are placed on the red-flag list when FPI holdings are within 3 percentage points of the permissible limit. If the limit is breached, foreign investors must divest their excess holdings within five trading days of trade settlement, selling the shares only to domestic investors. Once this dip in foreign ownership is updated with the depositories, benchmarks will likely exclude the stock within 2-3 business days.
Jefferies estimates that Swiggy could see passive outflows of over $400 million from MSCI and FTSE indices following the red-flag listing. According to The Economic Times, the brokerage noted that the company indicated that operational groundwork is underway, enabling a seamless migration once all necessary approvals and implementation steps are completed. Swiggy shareholders last month approved proposals to achieve Indian-owned and controlled company (IOCC) status, capping foreign shareholding at 49.5%. The company's entry into the MSCI Index in August 2025 is now facing potential delisting in the upcoming MSCI rebalancing.
Sumeet Bagadia, Executive Director at Choice Broking, noted that Swiggy shares are trading in a range of ₹230 to ₹280. According to Live Mint reports, Bagadia suggested that on a break above ₹280, we can expect a fresh uptrend in the food delivery company's stock. He advised Swiggy shareholders to hold the scrip long-term with a strict stop loss at ₹230 for targets of ₹300 and ₹330. The technical analysis indicates potential for recovery once the stock breaks above the ₹280-per-share hurdle.
Swiggy shares have fallen over 7% in a week and 32% in 2026 so far, with the stock down more than 37% in one year. As reported by The Economic Times, the stock has lost around 7.50% over the last six months and fallen close to 40% in one year. Despite the current challenges, market experts maintain that the food delivery company's fundamentals are strong and the Swiggy share price may not break its existing 52-week low of ₹235 per share.
