Swiggy, Eternal surge up to 7%. Should investors chase the rally?

Swiggy shares surged over 7% to a two-month high of around Rs 280 while Eternal (formerly Zomato) jumped about 5% to roughly Rs 300, driven by Swiggy disclosing that foreign ownership has fallen below 50% (about 49.76% as of July 6), with domestic ownership crossing the 50% mark. This raises hopes that Swiggy can re-attempt an Indian-Owned and Controlled Company (IOCC) classification, which would allow Instamart to own inventory directly and improve margins. Brokerages remain constructive — Motilal Oswal expects food delivery growth of around 18-20% and sees Blinkit strengthening, while Anand Rathi maintained a Buy on Eternal with a target of Rs 400 and a Hold on Swiggy with a target of Rs 310.