Delivery technology stocks rally as buying interest pushes Eternal and Swiggy to multi-month highs
Shares of food delivery and quick commerce platforms rallied sharply on February 10, with Eternal, the parent of Zomato, climbing to a 12-week high and Swiggy advancing to a near one-month high, as a mix of block deals, reported mutual fund accumulation and product announcements drew investor interest.
Eternal rose more than 6% in Tuesday’s trade to ₹307.45 apiece, its highest level since November 21. Swiggy gained over 5% to ₹350.95, marking its strongest level in nearly a month. The moves outpaced the broader market, according to exchange data.
Market participants said the rally was not tied to a single trigger but rather to a combination of institutional activity and sentiment toward India’s new-age technology companies, particularly those linked to consumption and urban demand.
Both stocks also saw sizable block deals during the session, which traders said helped reinforce momentum and signal continued institutional engagement in the segment.
The rally matters as investors reassess new-age tech valuations and growth visibility
The rise in Eternal and Swiggy shares comes at a time when investors are re-evaluating the valuation and earnings trajectory of India’s internet and platform companies after a period of sharp corrections and selective recoveries.
For much of the past two years, delivery and quick commerce firms have faced scrutiny over profitability, cash burn and competitive intensity. Any signs of operational scaling, technology-led efficiency or sustained institutional interest tend to draw close market attention.
The latest moves suggest that parts of the market are willing to re-enter select names where growth visibility and market positioning appear relatively stronger.
Eternal’s inclusion in the Nifty 50 index also gives it additional visibility among passive and institutional investors, potentially amplifying the impact of flows compared with smaller peers.
Also Read : Fractal Analytics IPO kicks off amid measured interest—does this signal selective buying in new-age tech?
The day’s data shows price spikes coinciding with large secondary market transactions
Trading activity on Tuesday indicated that price gains were accompanied by meaningful share transfers.
According to official market data:
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Nearly 1.19 crore Eternal shares changed hands in multiple block deals
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At the previous close of ₹288.85, the cumulative value would exceed ₹344 crore
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More than 21.60 lakh Swiggy shares changed hands in six large block deals
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At the previous close of ₹333.70, the value would be about ₹72.08 crore
The identities of buyers and sellers were not immediately disclosed in exchange data. It is therefore not yet clear whether the trades reflect fresh long-term positioning, stake reshuffling among existing investors, or partial exits.
Volume spikes around block deals often attract momentum-driven traders, which can accentuate price moves in the short term.
Some elements behind the rally remain unclear as disclosures are awaited
While block deal volumes and price action are visible, the underlying intent of participants remains uncertain.
It is not yet clear:
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Whether the buyers were long-only institutional investors or shorter-term funds
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Whether the trades represent strategic stake building or portfolio rebalancing
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How much of the rally is momentum-driven versus fundamentally anchored
Detailed shareholding pattern updates and subsequent disclosures may provide more clarity over time.
Market participants also cautioned that single-session moves do not always translate into sustained trends, particularly in stocks that have historically seen sharp swings.
Institutional activity appears to be shaping sentiment in delivery tech names
A report by the Economic Times said domestic mutual funds held about ₹1.77 lakh crore worth of shares in roughly 12 new-age companies at the end of 2025, nearly double the ₹95,000 crore held a year earlier.
According to the publication, Eternal and Swiggy are among the key companies where mutual funds have built meaningful exposure.
Eternal reportedly accounted for more than 40% of total mutual fund holdings within the new-age company basket, underlining its weight in institutional portfolios. Mutual funds were also described as major buyers in Swiggy’s ₹10,000-crore share sale in December last year.
While fund-level transaction data for the latest session is awaited, the broader trend points to rising domestic institutional participation in platform and technology-driven businesses.
Product and technology signals add another layer to the investment narrative
Investor attention was also drawn to Eternal’s latest technology initiative.
Zomato on Monday launched a dedicated AI-powered hotline—89200 89200—to streamline onboarding for delivery partners, according to a company statement reported by Business Standard. The process initiates an AI-enabled WhatsApp journey where onboarding and background verification can be completed within minutes.
The move builds on the company’s earlier push into AI-led tools. About a year ago, it introduced “Nugget,” an AI-native, no-code customer support platform aimed at helping businesses scale support functions with lower costs and minimal developer intervention.
While it is too early to quantify the direct financial impact of these tools, technology-led efficiency improvements are closely watched in a sector where margins are sensitive to scale and operational costs.
The broader backdrop shows India’s platform economy maturing under investor scrutiny
India’s food delivery and quick commerce market has grown rapidly, supported by urbanisation, rising disposable incomes and smartphone penetration. At the same time, competition and discounting have historically weighed on profitability.
Over the past two years, several listed new-age firms have shifted focus from growth-at-any-cost to unit economics and cost discipline. Investors have responded by becoming more selective, rewarding companies that demonstrate a credible path to profitability.
Compared with some Asian peers, Indian internet stocks offer exposure to domestic consumption growth, which can be relatively insulated from global trade cycles. However, they are still sensitive to risk appetite and liquidity conditions.
Market voices frame the move within a cautious but evolving outlook
Analysts and fund managers generally view renewed interest in delivery platforms as part of a broader reassessment rather than a blanket return to high-growth tech bets.
Some investors see scale advantages and ecosystem integration as potential long-term strengths for leaders in the space. Others remain cautious about valuations and competitive pressures.
Because many of these companies are still in relatively early profitability cycles, earnings visibility and execution consistency remain central to investor confidence.
For investors, the episode highlights both opportunity and volatility in new-age stocks
Tuesday’s rally underscores how quickly sentiment can shift in platform stocks when liquidity and institutional signals align.
Key takeaways for investors include:
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Block deals can act as sentiment catalysts but do not always signal long-term conviction
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Mutual fund participation can lend stability, but flows can also reverse
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Technology announcements improve narrative but must translate into financial outcomes
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Price momentum in new-age stocks often comes with elevated volatility
Long-term investors typically track execution metrics, contribution margins and cash flow trends more closely than single-day price moves.
The next triggers will determine whether the rally sustains or cools
Market participants say several factors will shape the trajectory ahead:
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Upcoming shareholding disclosures that clarify institutional positioning
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Quarterly results and commentary on profitability and order growth
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Competitive intensity in quick commerce and food delivery
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Broader market risk appetite for growth-oriented stocks
If institutional flows remain supportive and companies demonstrate improving economics, interest in the segment could persist. Conversely, any disappointment on margins or growth could temper sentiment.
For now, Tuesday’s session shows that delivery technology stocks remain firmly on investors’ radar, with liquidity, institutional behaviour and technology narratives jointly driving price action in a closely watched corner of India’s equity market.
