Eternal Shares Soar 4% on Hopes of Increased MSCI Weightage, $390M Inflows Expected

• Eternal Ltd. shares jumped 4% on Tuesday, marking their fifth consecutive session of gains.
• The surge follows the release of Eternal's shareholding pattern, indicating an increase in foreign headroom.
• Analysts believe the increased foreign headroom (above 25%) makes Eternal eligible for full MSCI weightage.
• A potential change in MSCI weightage during the February review could lead to passive inflows of $390 million.
• Despite recent corrections, analysts like HSBC (₹350 target) and JM Financial (₹400 target) remain bullish, with 29 out of 33 analysts recommending 'buy'.

Why It Matters: Eternal shares rallied on increased foreign headroom, potentially leading to higher MSCI weightage and significant inflows.