Eternal Ltd has closed its trading window for dealing in the company's securities from June 20, 2026, until 48 hours after the declaration of its unaudited standalone and consolidated financial results for the quarter ending June 30, 2026. This measure is implemented to comply with the SEBI (Prohibition of Insider Trading) Regulations, 2015, and the company's internal code of conduct. The restriction specifically prohibits designated persons and their immediate relatives from entering any transaction involving the company's shares during this closure period.

The company will communicate the specific date for the board meeting to consider and approve the unaudited financial results for the quarter ending June 30, 2026, in due course. While the trading window is effective immediately, the mechanism to freeze the Permanent Account Number (PAN) of designated persons and their immediate relatives on the designated depository portal will be activated from July 1, 2026. This delay in PAN freezing functionality is attributed to the implementation timeline required by relevant SEBI circulars.

The regulatory framework guiding these actions includes SEBI circulars dated August 5, 2022, July 19, 2023, and April 21, 2025. These directives mandate the restriction of trading by designated persons to prevent insider trading during sensitive periods leading up to financial announcements.

Key Dates and Restrictions

Eternal has emerged as a consensus top pick among major brokerages, with both Morgan Stanley and UBS reiterating their bullish stance on the company even as Indian internet stocks face broad-based pressure from macro, competition, and AI-related concerns. UBS has also maintained its Buy rating on Swiggy, reinforcing selective confidence across the Indian internet space despite sector-wide headwinds.

Sector Under Pressure Amid Multiple Headwinds

The Indian internet sector is navigating a difficult phase, with stocks correcting 10–30% year-to-date on the back of macro uncertainty, intensifying competition, and AI-related concerns. PE/VC funding has declined 23% YoY, signaling reduced investor appetite for the space. The quick commerce segment continues to see rising competitive intensity, while the possibility of a broader demand slowdown adds further uncertainty. Morgan Stanley notes that earnings downgrade risks persist across the sector in this environment.

The key sectoral challenges can be summarized as follows:

• Sector correction: 10–30% YTD decline across Indian internet stocks
• PE/VC funding: Down 23% YoY, reflecting weak investor sentiment
• Quick commerce: Rising competitive intensity among players, though showing signs of moderation
• Demand outlook: Potential slowdown posing risks to near-term growth
• Earnings risk: Downgrade risks continuing to weigh on valuations

Brokerage Endorsements: Eternal and Swiggy in Focus

Despite the broader sector weakness, Eternal and Swiggy stand out as preferred names across major brokerages. Morgan Stanley has reiterated Eternal as its top pick in the internet sector, underpinned by the company's strong execution track record, solid balance sheet, and favorable industry tailwinds. UBS has assigned a Buy rating on Eternal with a target price of ₹305, while separately maintaining a Buy rating on Swiggy with a target price of ₹335. Both calls cite stabilising GMV, NOV, and billings growth across internet segments, as well as moderating quick-commerce competition as key positives supporting the investment case.

Growth Dispersion Remains High; Select Names Stand Out

Despite the broader sector weakness, Morgan Stanley emphasizes that growth dispersion across internet companies remains high, creating selective opportunities for investors. The brokerage has identified specific names with differentiated outlooks, as detailed below:

Logistics and E-Commerce Players in Focus

Within the broader internet ecosystem, logistics players are emerging as a notable area of interest. Delhivery and Shadowfax are highlighted as beneficiaries of third-party logistics (3PL) share gains, a structural trend that Morgan Stanley believes will continue to support their growth trajectories. Meanwhile, Meesho is expected to outpace its peers on growth, with the platform also anticipated to demonstrate gradual profitability improvement over time. This combination of top-line momentum and improving unit economics positions Meesho as a differentiated player within the competitive e-commerce landscape.

Preferred Picks Retain Standing Across Coverage

Amid sector-wide turbulence, Eternal and Swiggy retain their positions as preferred picks across brokerage coverage. Morgan Stanley points to Eternal's strong operational execution and robust balance sheet as key differentiators. UBS highlights the stabilisation of key operating metrics and easing competitive pressures in quick commerce as additional catalysts for both Eternal and Swiggy. Together, these endorsements reinforce the resilience of select names within a challenged sector.