Shares of Eternal Ltd, Zomato's parent company, dropped over 5% to a five-month low amid heavy trading volumes, ending a recent rally. The decline was driven by broader market weakness and profit-taking.
Shares of Eternal Ltd, the parent company of food delivery major Zomato and quick-commerce platform Blinkit, witnessed sharp selling pressure on Tuesday, December 16. The stock slid over 5 per cent during intraday trade, touching a low of Rs 282.65, marking its steepest single-day fall since July.
The decline also brought an abrupt end to Eternal's three-day rally, as broader market weakness added to the selling momentum.
Selling pressure builds from the opening bell
Eternal shares opened lower at Rs 298.20 and continued to drift downward through the session as investors booked profits and risk-off sentiment prevailed across the market. By early afternoon, the stock had wiped out all gains made over the past three trading sessions.
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Heavy trading volumes reflected the intensity of the sell-off. Around 4.39 crore shares changed hands on the BSE and NSE combined by 1:30 pm, more than double the stock's average daily volume, suggesting active participation from both institutional and retail investors.
December turns weak despite modest yearly gains
Tuesday's fall has pushed Eternal shares down nearly 4 per cent so far in December. On a year-to-date basis, however, the stock remains slightly in the green, with gains of about 3.4 per cent.
Market watchers say the recent correction follows a strong run earlier this year and reflects growing caution as investors reassess valuations amid regulatory and macroeconomic uncertainties.
Block deals keep investors on edge
The stock has seen a steady stream of large block deals in recent months, keeping it firmly in focus. Just last week, around 5.3 crore shares—roughly 0.54 per cent of the company's equity, changed hands in a single transaction.
In mid-November, two separate block deals involving nearly 90 lakh shares worth Rs 279.25 crore were executed. Earlier in June, more than 60.9 lakh shares were traded at an average price of Rs 256 per share, amounting to a deal value of Rs 156 crore.
While such transactions highlight continued institutional interest, they also tend to add short-term volatility to the stock.
Pressure mounts after October record high
Eternal shares have remained under pressure since hitting an all-time high of Rs 368 in October. The downtrend deepened in the weeks that followed, especially after the Centre rolled out new labour codes.
The revised rules require aggregator platforms to contribute 1–2 per cent of their annual turnover, capped at 5 per cent of payments made to gig and platform workers, towards social security benefits. This raised concerns over higher compliance costs and their potential impact on margins.
Can higher costs be passed on to customers?
Despite near-term worries, several brokerages remain cautiously optimistic. Analysts believe most platforms, including Eternal's businesses, could gradually pass on the added costs to consumers.
They argue that a modest increase of Rs 2–Rs 3 per order is unlikely to materially affect customer behaviour, particularly after users have already adjusted to recent platform fees.
