Swiggy shares surge nearly 8% as Eternal’s Q1 results fuel quick commerce rally

Shares of Swiggy Ltd rallied sharply on Tuesday, July 22, following strong quarterly results from rival Eternal Ltd (formerly Zomato), sparking renewed investor interest in India’s food delivery and quick commerce sector. Swiggy’s stock hit an intraday high of Rs 426.30, up nearly 7.9 per cent on the National Stock Exchange (NSE). By 10:03 a.m., shares were trading at Rs 414, marking a 4.8 per cent gain. As of 12:10 p.m., Swiggy stood at Rs 408.60, up 3.51 per cent.

Why are Swiggy shares rising?

The rise in Swiggy’s share price comes on the back of Eternal’s strong April-June quarter performance, which showed a 70 per cent year-on-year revenue growth primarily driven by its quick commerce business, Blinkit. Eternal’s shares soared 15 per cent on Monday and extended gains on Tuesday, boosting confidence across the food delivery sector.

Other major players, including Zomato, also saw their shares rise sharply, with a 14 per cent increase on Tuesday. This sector-wide rally reflects growing investor optimism about the future of India’s online food delivery and quick commerce markets, which continue to show rapid growth despite profitability challenges.

Swiggy shares rally strong technically

From a technical analysis perspective, Swiggy shares display strong bullish momentum. The Relative Strength Index (RSI) is currently at 60.8, signaling healthy buying activity without reaching overbought conditions. Additionally, the stock is trading above key Simple Moving Averages (SMA), including the 5-day and 150-day SMAs, reinforcing the positive trend.

Market analysts believe Swiggy is well-positioned to capitalize on the expanding food delivery market and the growing quick commerce segment. However, investors should also consider current market valuations and macroeconomic factors that could impact future stock performance.

Overall, Swiggy’s nearly 8 per cent surge on Tuesday highlights positive investor sentiment triggered by Eternal’s strong Q1 results, making food delivery stocks attractive picks in India’s booming digital commerce landscape.