Swiggy shares continued their downward trajectory on Tuesday, January 6, marking the third consecutive day of losses for the food delivery and quick commerce platform. The stock declined 4.4% to ₹361.95, falling below key price levels that investors have been closely monitoring.

Stock Performance and Key Price Levels

The recent decline has pushed Swiggy's shares below critical benchmarks, creating concern among investors. The stock performance against key price levels shows the extent of the current correction:

The company had raised ₹10,000 crore through its Qualified Institutional Placement (QIP) at ₹375 per share to strengthen its financial war chest for expansion and competitive positioning.

Strong Analyst Support Despite Price Decline

Despite the recent correction, analyst sentiment remains overwhelmingly positive. The coverage distribution shows strong confidence in the company's long-term prospects:

Global Fund Manager Optimism

Matt Orton, Chief Market Strategist at Raymond James, expressed confidence in Swiggy's strategic positioning despite the competitive landscape. He emphasized the company's financial strength and strategic investments, noting that Swiggy has "shored up its credit lines" and has "money to put to work to invest in higher value propositions." Orton highlighted that returns are already visible from recent enhancements and expects potential benefits from GST reforms on consumption patterns.

Orton specifically stated that "Swiggy looks fairly cheap" following its challenging start to 2025, positioning the stock favorably for the upcoming quarters and 2026.

Institutional Portfolio Changes

Brokerage firm CLSA has made strategic adjustments to its India focus portfolio, demonstrating continued faith in consumption-focused stocks. The firm included Swiggy in its portfolio alongside Avenue Supermart to increase consumption exposure, while removing Reliance Industries and Nestle India from the same portfolio.

Market Context and Recovery Prospects

The food delivery and quick commerce sector continues to face intense competition, with significant cash burn across industry players. However, analysts believe this competitive intensity cannot sustain indefinitely, potentially creating opportunities for well-capitalized players like Swiggy to gain market share and improve profitability metrics.

Billionaire Cyrus Soli Poonawalla has acquired 11.235 lakh shares of Swiggy for ₹42.35 crore in an open-market transaction, according to NSE bulk deal data. The acquisition was made from his firm, Serum Institute of India, at an average price of ₹377.00 per share.

Transaction Details

The share acquisition was executed through a bulk deal mechanism on the National Stock Exchange. Poonawalla, who serves as Chairman and Managing Director of Serum Institute of India, conducted the transaction at market rates during regular trading hours.

Recent QIP Fundraising

The transaction comes after Swiggy's successful fundraising initiative. The food and grocery delivery company raised ₹10,000.00 crore through a qualified institutional placement (QIP). The QIP witnessed participation from prominent domestic investors including ICICI Prudential Mutual Fund, SBI Mutual Fund, and Aditya Birla Sun Life Mutual Fund.

Global financial institutions such as Temasek, Norway's sovereign wealth fund, Vanguard, Capital Group, Nomura, and Goldman Sachs also participated in the institutional placement, demonstrating strong investor confidence in the platform.

Market Performance

Swiggy shares closed at ₹377.80 per piece on the NSE, declining 2.43% during the trading session. The stock's performance reflects the broader market sentiment and trading dynamics in the food delivery sector.