Morgan Stanley keeps Eternal as top India internet pick despite 8% sector pullback
MS reiterates Overweight on Eternal, also favouring Pine Labs and Shadowfax. Sector down 8% from March 2026 peak amid quick-commerce margin pressure and PE/VC funding falling 23% YoY. Eternal outperforms Swiggy by 11pp, Shadowfax leads Delhivery by 28pp, Paytm beats Pine Labs by 14pp. Meesho flagged for strong e-commerce growth.
Morgan Stanley reiterates Overweight on Eternal as top India internet pick, also favouring Pine Labs and Shadowfax. Notes 8% sector pullback, divergent stock performance, quick-commerce margin pressure, and Meesho's strong growth outlook in e-commerce.