ETERNAL (Zomato) Share Price Hit 52-Week High in July, But Mutual Funds Are Still Jumping Ship. Here's Why!

Mutual funds in India are making a big move in the food delivery space. In July alone, they sold shares worth ₹1,700 crore in Zomato's parent company, Eternal, and invested ₹1,400 crore into its rival Swiggy. This ₹3,100 crore shift signals a change in strategy as fund managers book profits from Zomato’s rally and bet on a recovery in Swiggy.

Zomato's Rise Triggers Profit Booking

Zomato has had a strong run in recent months. ETERNAL share price rose by 17% in July, reaching a new 52-week high of ₹319.80. This rally followed a 21% gain in June, making it one of the top-performing stocks in the sector.

However, many mutual funds saw this as a chance to take profits. ICICI Prudential MF sold Zomato shares worth ₹810 crore, followed by Mirae Asset (₹820 crore), with Kotak and SBI MF also reducing their holdings. Only a few, like Axis MF, HDFC, and Motilal Oswal, went against the trend by increasing their stake.

Swiggy: Buying the Dip

While Zomato was flying high, Swiggy struggled. Swiggy share price is down 26% so far in 2025. But mutual funds saw this drop as a buying opportunity. Mirae Asset, HDFC, SBI MF, Bandhan, and Invesco collectively bought shares worth ₹1,400 crore.

Swiggy gained just 1% in July despite this heavy buying, showing the stock's current weakness. Still, fund managers believe the worst may be over, especially with signs of improving profitability and reduced competition ahead.

Read more: Stocks Mutual Fund Houses Bought and Sold in July 2025: SBI, Reliance, and New IPOs.

Conclusion

Mutual funds are shifting gears. They are booking profits from Zomato’s rise and betting on a rebound in Swiggy. While retail investors remain excited about both, institutional moves often reflect deeper market analysis. Whether you prefer playing it safe or taking a recovery chance, having a solid strategy is key in today’s market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully.