Negative impactCorporate Action
Eternal vs TCS shares: Zomato parent’s weightage more than IT giant in Nifty 50 | Should you buy?
Mint 1 hr ago·7 Oct 2026, 11:07 am
Eternal has surpassed Tata Consultancy Services (TCS) to become the second-largest company in the Nifty 50 index, driven by its massive market capitalisation. This shift is largely due to the index methodology, which uses free-float market capitalisation to determine weights. This means that only the portion of shares available for trading is counted, giving higher prominence to companies where a significant chunk of equity is not held by promoters or locked up.
This reclassification matters for investors because it changes how index funds and ETFs allocate their money. As these funds rebalance their portfolios to match the new weights, they will likely buy more Eternal shares and sell some of their TCS holdings. This increased demand can push the stock price higher. For retail investors, it signals a growing market preference for high-growth sectors over traditional IT stocks.
Moving forward, investors should monitor the quarterly earnings reports of both companies to see if this trend continues. While the index weight change provides a short-term boost, the long-term performance will depend on Eternal's ability to sustain its growth momentum and TCS' ability to maintain its market position in a competitive global landscape.
Excerpt from Mint
Eternal now holds a higher weight in the Nifty 50 than TCS, driven by its market capitalisation methodology emphasizing free-float shares. The shift stresses a market preference for high-growth companies as passive funds adjust to allocate more capital towards growth-oriented stocks like Eternal. Eternal has overtaken…Read the original at Mint
Affected stocks
Bearish2 stocks
Bull / bear label is derived from the article's AI sentiment — indicative, not advice. Prices may be delayed.
Key takeaways
- Concerns Eternal (ETERNAL).
- Category: Corporate Action.
- AI reads the tone as negative (potentially bearish) for the stock.
- Assessed as a significant, market-relevant update.
- Also mentions TCS.
Why it matters
A meaningful update for Eternal worth tracking. The tone is negative — watch for downside reaction. Use the price and stock snapshot to gauge how the market is responding.
