Funds Go Gourmet: Eternal & Swiggy on the Menu, Nykaa & BSE Off the Plate

India's mutual fund managers are cooking up a fresh recipe for investment—backing new-generation tech disruptors big time and trimming some of the recent market darlings.

 

Mutual funds invested a combined ₹7,500 crore in Eternal Ltd (which has Zomato and Blinkit) and Swiggy during May 2025, according to Prime Database and industry trackers. Eternal garnered ₹5,300 crore alone and was the third-most bought stock of the month, while Swiggy had ₹2,294.87 crore invested.

 

This buying spree was led by bellwether fund houses like SBI Mutual Fund, ICICI Prudential, Kotak Mahindra MF, and HDFC Mutual Fund, as there is growing optimism regarding the long-term future of food delivery and instant commerce-even as both the firms are dealing with issues of profitability and cutthroat competition.

 

While that, Nykaa (FSN E-Commerce) and BSE Ltd saw significant outflows, with mutual funds offloading ₹ 1,100 crore and ₹800 crore of shares respectively. Even while BSE's stock has more than doubled in the last three months, fund managers appear to be taking profits and moving money into bets on growth.

 

Veteran heavyweights like ITC and HDFC Bank remained in the top buying lists, investing ₹8,000 crore and ₹5,800 crore respectively, showing that fund managers are balancing stability over innovation.

 

Analysts are optimistic, albeit cautiously so. While Eternal and Swiggy have seen year-to-date stock price declines of 9% and 33%, brokerages like BofA and ICICI Securities say there's superior revenue traction and less pressure on pricing in the quick commerce segment.

 

Sources: Economic Times, MSN Money, CNBC TV18