Swiggy share price fell for the second consecutive session, slipped over 2.30% on NSE in Thursday’s trading session after global index provider MSCI announced on Wednesday, September 2, the removal of the food delivery company from its flagship MSCI Global Standard Index as well as the MSCI Mid Cap Index from 7 September, just a year after its inclusion.
opened at ₹265.35 on NSE today, as compared to previous close of ₹267.70 on Wednesday.
The stock declined 4% on Wednesday to ₹264.55, its lowest level since late July, taking its two-day losses to 6%. The drop erased nearly ₹5,000 crore from the company’s market capitalisation, which fell to ₹77,813 crore.
Why MSCI has removed Swiggy from the global index?
The food delivery company was included in the indices in August 2025, following the approval of a resolution at Swiggy’s annual general meeting on August 18 that paved the way for the company to become Indian-owned and controlled.
Under the criteria for an Indian-owned and controlled entity, foreign shareholding must be below 50%, while resident Indians must hold a majority of board representation. had already reduced its foreign ownership limit to 49.5% from 50.02% in June.
In a report dated August 19, Jefferies India said the restriction on foreign holdings could trigger passive outflows from overseas funds that track the MSCI and FTSE indices. While the brokerage termed the development a near-term negative for the stock, it said domestic investors could potentially offset the foreign outflows if Swiggy’s underlying fundamentals continue to strengthen.
Eternal, the parent company of Zomato and Blinkit, introduced a similar restriction on foreign ownership in April 2025. Its shares have gained around 40% since then, driven by an improvement in financial performance. This could serve as a precedent for Swiggy as it deals with the short-term pressure arising from index-linked fund outflows.
The removal from the MSCI index could prompt selling by funds that track the benchmark. Market estimates indicate that Swiggy could witness passive outflows of up to $340 million following its deletion.
Swiggy share price trend
has remained under pressure. The stock has lost 39% of its value in the last one year and over 33% on year-to-date (YTD) basis.
The stock has declined nearly 9% over the past month and 8% in the last week, significantly underperforming the broader index, which fell by more than 1%.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.