Why Eternal shares are at a risk of $500 million outflow: 5 triggers explained

The Eternal share price is in focus for more reasons than just its earnings. The MSCI India Standard Index rebalancing announcement is scheduled on August 7, and this may lead to Eternal shares seeing a potential outflow of $500 million. This is as per estimates by Jefferies on the basis of their current foreign ownership. Eternal’s foreign ownership has come down to less than 43% as of June from 52% last June, 2024. This, as per international brokerage house, Jefferies, may “attract a weight cut of 50 bps in the subsequent MSCI rebalance leading to expected outflows.”