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Zerodha Pulse • Jun 12, 2026 08:28 AM • Impact Score: 5.0/10 • Severity: MEDIUM

Eternal Tops Morgan Stanley's Internet Sector Picks Despite Rising Competition, Earnings' Downgrades

According to Morgan Stanley, India's internet market-cap index has fallen about 8% from its peak at the end of March 2026, broadly tracking the decline seen in the US internet market-cap index.

Impacted Stocks

ETERNAL — Eternal Ltd

▲ Bullish +1.2016%

Morgan Stanley maintaining Eternal as its top sector pick provides a strong sentiment anchor despite macro internet headwinds and widespread earnings downgrades. This institutional backing acts as a powerful catalyst for fund inflows, likely supporting a multi-day to multi-week bullish price continuation. Given that Eternal is outperforming major peers, this positive divergence will likely attract momentum swing traders looking for structural relative strength.

Price at alert: ₹241.35

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