Mumbai/New York: Stocks of global e-retailers – Amazon and Walmart – are expected to remain subdued in the short-term as India’s new Foreign Direct Investment (FDI) norms for e-commerce companies dented investor sentiments.
The slide in the two e-tail giants assumes significance as India is viewed as a major market for future growth and expansion for the two companies. Currently, the market has captured the interest of not just American multi-nationals but even those from China. “The impact will be there for the next few days,” said Deepak Jasani of HDFC Securities. However, analysts are of the view that both suppliers and consumers will get used to the new policy environment.
On February 1, disruption was caused in the e-commerce operations in India of the two companies after the new FDI norms for the e-commerce sector came into effect. The norm prohibited the online retailers from mandating any company to sell their products exclusively on its platform. In the new policy, the Commerce Ministry also noted that the online retail firms would not directly or indirectly influence sale price of goods and services and would maintain level playing field. (IANS)
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