Eternal Share Prices Soar After Jefferies Addition

Shares of Zomato and Blinkit-parent Eternal surged as much as 10% on 3 February 2026. It briefly hit the upper circuit after Jefferies added the stock to its India model portfolio. The sharp move came early in the session as traders reacted to the brokerage’s portfolio change and its broader view on foreign investor sentiment toward India.

The stock climbed to ₹299.90 in early trade before giving up a part of its gains as profit-taking set in. Eternal closed the day more than 2% higher at ₹278.50 on the NSE, outperforming the broader market. The rally stood out because it followed weeks of uneven trading in large consumer stocks.

What Added To The Rise?

Analysts point towards the addition of Eternal by Jefferies to its India model portfolio behind the rise. Jefferies said it added Eternal to its India model portfolio after a shift in the macro backdrop following the India-US trade deal.

The brokerage said the agreement has helped address a key concern for overseas investors at a time when India remains underweight in emerging market portfolios. Eternal replaced Godrej Consumer Products in Jefferies’ model portfolio.

The brokerage attributed the switch to Eternal’s stronger growth outlook and margin improvement across its quick commerce and food delivery businesses.

Focus On Growth And Margin

Jefferies said Eternal has shown steady improvement in operating metrics across its core segments. The brokerage highlighted gains in both food delivery and quick commerce, where Blinkit has expanded its footprint and improved unit economics.

While Jefferies did not provide fresh earnings estimates in the note, it said margin improvement remains a key factor behind its preference for the stock. The brokerage also flagged scale benefits and operating leverage as areas to watch over the coming quarters.

The comments come at a time when investors are closely tracking profitability in India’s consumer internet space. Many stocks in the sector have seen sharp swings as the market weighs growth against cash burn and valuations.

Recent Share Price Performance

Eternal’s share price has seen mixed movement in recent periods. The stock has gained more than 9.5% over the past five trading sessions, helped by the sharp move on 3 February 2026.

Over the past month, however, the shares have been down more than 1%. The stock has fallen around 9% over the last six months. So far in 2026, the stock is down nearly 2%, despite periodic rallies linked to earnings and broker commentary.

Sector Context

The move in Eternal comes amid renewed interest in select consumer-facing technology stocks after months of cautious trading. Eternal’s inclusion in a global brokerage’s model portfolio highlights how macro factors are increasingly shaping stock-specific moves. This even in the absence of fresh company announcements.

What Does It Mean for Investors?

For investors, the jump in Eternal’s share prices shows the sensitivity of high-valuation stocks in foreign investor sentiment and brokerage positioning. Inclusion in a model portfolio can drive short-term flows.

However, price swings may continue as markets track FPI movement. The focus is likely to remain on earnings delivery, margin trends, and signs of sustained profitability in quick commerce and food delivery.

Sources:

Moneycontrol

Economic Times