Eternal May See $1.3 Billion FII Outflow After IOCC Move Raises MSCI Concerns and Technical Outlook

Eternal Ltd, parent of Zomato & Blinkit, may face foreign investor outflows after shareholders approved converting it into an Indian Owned and Controlled Company (IOCC). What is IOCC and Why It Matters? The move limits foreign ownership, helping Blinkit comply with Indian retail rules. This enables it to: ● Stock and sell its own inventory ● Launch private-label products ● Improve margins in grocery & FMCG This shift gives Blinkit greater control like a traditional retailer. What’s the Risk? ● FIIs hold 44.8% of Eternal (as of Mar 2025); MSCI allows a max of 46.5%. ● If IOCC conversion lowers the foreign ownership cap, Eternal may get "red-flagged" by MSCI. This could trigger: ● Forced selling worth $1.3B ● $650M MSCI weight reduction Market Reaction Stock fell 4.1% to ₹228.28 on concerns over FII exits. Some believe the IOCC move boosts Blinkit’s long-term profitability by enabling a tighter supply chain. Technical View ● Rejected at ₹239.54; now below 9, 70 & 100-day EMAs ● Support: ₹223.96–₹222.96. Breakdown may lead to ₹206.61 or ₹199.28 ● RSI neutral, bearish candles with rising volume signal short-term weakness ● Holding ₹222 could offer a bounce to ₹239–₹262. Trade cautiously. Stay tuned for more such updates, Thank You! Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.