Swiggy share price gains 5% despite the weak Indian stock market. Do you own it?

Swiggy Shares Soar Despite Market Dip and Amazon's Entry

While the Indian stock market remained relatively stagnant, Swiggy's share price surged over 5% on Thursday, reaching intraday highs of ₹385 on the BSE. This impressive performance comes amidst growing competition in the quick commerce (QC) sector, fueled by Amazon's official launch of Amazon Now in Bengaluru.

The Market Context: The benchmark S&P BSE Sensex fluctuated between 81,191.04 and 81,583.94, a relatively narrow range compared to its previous day's close of 81,444.66.

Analyst Perspectives on Swiggy's Future

• JM Financial: Maintains a BUY rating on Swiggy, acknowledging the increased competition from Amazon's entry. However, they believe Swiggy's medium-term growth prospects remain strong due to the QC market's exponential growth, driven by shifting consumer spending and expansion into new markets.
• Jefferies India Pvt. Ltd.: Also notes Amazon's entry into the Bengaluru QC market, highlighting that while competition is a factor, Amazon faces challenges due to its late entry and lack of established brand recognition in the QC space. They suggest Amazon will require significant investment and effort to become a major player.

The Takeaway: Despite the increased competition, analysts remain bullish on Swiggy's potential for continued growth. The burgeoning QC market and Swiggy's established position appear to outweigh concerns surrounding Amazon's arrival.

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