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Walmart To Take Control Of Flipkart, SoftBank CEO Confirms

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Walmart Inc. will take control of India’s largest e-commerce company Flipkart Ltd. in its biggest acquisition, joining the three-way fight for online supremacy in the country.

SoftBank’s 20 percent stake in India’s largest e-retailer is worth about $4 billion in the deal, Chief Executive Officer Masayoshi Son said in an earnings webcast. The Japanese company had earlier bought this stake, through its Vision Fund, for $2.5 billion, he said.

Son didn’t elaborate on other terms of the Walmart takeover.

The deal will fortify Flipkart’s war chest as the fierce competition has already wiped out about half of the $6.1 billion it has raised from investors since inception. The opportunity is huge with Alibaba Group-backed Paytm also in the race. Online sales account for less than a tenth of the $672-billion retail share in world’s second-most populous nation. But it’s among the fastest growing e-commerce markets, driven by rising smartphone sales and cheaper data.

The acquisition also brings the world’s biggest retail battle to India as Amazon.com Inc is already challenging Walmart while the Seattle-based online retailer lost out to Jack Ma’s Alibaba Group in China. So, India is the next big potential market for both. Amazon’s founder Jeff Bezos has already committed $5.5 billion investments.

Walmart’s has had a tough run in Asia’s third-largest economy. India hasn’t opened multi-brand retail to foreign companies and the Bentonville, Arkansas-based giant set up a joint venture with Bharti Enterprises Ltd. for cash-and-carry wholesale stores. Bharti pulled out of the joint venture after six years following an internal anti-corruption probe.

Walmart had been on acquisition spree to build up its online play. It made a big splash in 2016 by buying Jet.com for $3.3 billion. It has since acquired two other online retailers, Bonobos and ShoeBuy, as well as Parcel Inc., an e-commerce logistics provider.

The deal with Flipkart is Walmart’s biggest acquisition, after its $10.8 billion purchase in 1999 of British retail chain Asda which it has now agreed to sell to British supermarket chain Sainsbury’s.

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Rupee falls 36 paise to 73.93 against dollar in early trade

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Mumbai | The rupee dropped 36 paise to 73.93 against the US currency in early trade on Monday, breaking its three-day recovery trend, as crude prices rose amid weak macroeconomic data.

A spurt in dollar demand from importers amid sustained foreign fund outflows also weighed on the rupee. Dealers said, factors like the dollar’s strength against some other currencies overseas and a volatile opening of the equity markets also impacted the domestic currency.

Industrial production slipped to a three-month low of 4.3 per cent in August and retail inflation rose marginally to 3.77 per cent in September, according to the data released by Central Statistics Office Friday. Friday, the rupee had ended 55 paise higher at 73.57 against the dollar, as global crude prices eased and domestic indices staged a smart rebound.

Foreign institutional investors (FIIs) sold shares to the tune of Rs 1,322 crore Friday, provisional data showed. The benchmark BSE Sensex fell by 70.85 points, or 0.20 per cent, to 34,662.73 in early trade after crossing the key 35,000-mark to hit a high of 35,008.65 at the outset.

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Sensex slips 71 points on negative economic data, weak rupee

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Mumbai | The BSE benchmark Sensex after reclaiming the 35,000-mark fell 71 points to quote at 34,662.73 Monday, as the IIP slipped to a three-month low in August and retail inflation rose marginally in September. Besides, weak Asian cues on worries over China-Us trade dispute influenced sentiment.

The 30-share barometer pushed lower by 70.85 points, or 0.20 per cent, to 34,662.73. It opened higher and touched a high of 35,008.65. The gauge had climbed 732.43 points in the previous session on Friday.

Sectoral indices were negative across the board, with oil&gas, auto, consumer durables, PSU, bankex, capital goods, metal, infrastructure and realty falling by up to 1.25 per cent. The NSE index Nifty was trading lower by 21.85 points, or 0.21 per cent, at 10,450.65 after shuttling between 10,524.60 and 10,432.

Selling activity emerged after data released by Central Statistics Office (CSO) on Friday showed that industrial production slipped to a three-month low of 4.3 per cent in August, while retail inflation up marginally to 3.77 per cent in September. Meanwhile, the rupee depreciated by 36 paise paise to 73.93 against the dollar in early trade after Brent crude again went past the USD 81 a barrel, which also dampened sentiments.

Hindustan Unilever, emerged top loser in the Sensex pack, falling 3.28 per cent, followed by ICICI Bank at 2.46 per cent.

Other big losers that dragged both the key indices were Maruti Suzuki, Axis Bank, L&T, Bharti Airtel, Bajaj Auto, PowerGrid, Kotak Bank, Coal India, Adani Ports, Asian Paint, HDFC Ltd, SBI, Vedanta Ltd and Tata Steel. However, stocks of Sun Pharma, ITC LGd, TCS, Infosys, RIL and Wipro were trading higher.

Foreign portfolio investors (FPIs) gave up shares worth a net of Rs 1,322 crore, while Domestic institutional investors (DIIs) remained net buyers, picking up shares worth a net of Rs 1,287 crore on Friday, provisional data showed.Most other Asian markets too were down on trade war worries and surging crude prices following rising diplomatic tensions between Riyadh and the West.

Japan’s Nikkei fell 1.39 per cent, Hong Kong’s Hang Seng shed 1.30 per cent, Taiwan was down 1.10 per cent in their early deals. Shanghai Composite Index, however, was flat. The US Dow Jones Industrial Average had closed 1.15 per cent higher on Friday.

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Sensex recovers over 600 pts ahead of key macro data, Nifty reclaims 10,400

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The 30-share Sensex climbed 639.80 points, or 1.88 per cent, to 34,640.95 with all the sectoral indices trading in the positive zone.

 

 

Mumbai, Oct 12 (PTI) The BSE benchmark Sensex staged a strong comeback by recovering over 600 points in opening trade on Friday following fresh purchases made by domestic investors ahead of key macroeconomic data to be released later in the day, fall in global crude prices and rupee recovery.

Positive leads from most other Asian markets too fuelled the uptrend.

The 30-share Sensex climbed 639.80 points, or 1.88 per cent, to 34,640.95 with all the sectoral indices trading in the positive zone.

The gauge had plummeted over 750 points to end at a six-month low.

The NSE Nifty was trading above the 10,400-mark, up 174.30 points, or 1.70 per cent, at 10,408.95.

Meanwhile, the rupee strengthened by 38 paise to 73.74 against the US dollar in early trade in the forex market after global crude prices eased.

Brokers said besides rupee recovery, built-up of positions by investors ahead of index of industrial production (IIP) numbers for August and inflation data for September – to be released later in the day – too impacted investor sentiment here.

In the Sensex pack, prominent gainers were M&M, Yes Bank, Maruti Suzuki, Adani Ports, IndusInd Bank, Vedanta, Asian Paints, RIL, Tata Steel, ICICI Bank, ITC, Hero MotoCorp, Coal India, Axis Bank, Kotak Bank, HDFC Bank, Sun Pharma, HDFC and Bajaj Auto, rising up to 4.08 per cent.

However, shares of country’s largest software exporter TCS fell 2.13 per cent even after the company Thursday reported a 22.6 per cent jump in consolidated net profit at Rs 7,901 crore in the July-September 2018 quarter.

Shares of oil marketing companies such as HPCL, BPCL and IOC remained strong and rose further by up to 5.33 per cent on falling global crude oil prices.

Brent crude, the international benchmark, fell 3 per cent to quote at USD 80.37 a barrel.

Stocks of Aviation companies – Spicejet, InterGlobe and Jet Airways – too were in better shape, rising up to 5.02 per cent, supported by falling crude prices.

Domestic institutional investors (DIIs) made purchases worth a net of Rs 1,888 crore Thursday, provisional data showed.

Elsewhere in Asia, Hong Kong’s Hang Seng was up 1.11 per cent, Singapore rose 0.18 per cent, and Taiwan gained 1.17 per cent in their late morning deals. However, Japan’s Nikkei was down 0.25 per cent and the Shanghai Composite Index shed 0.12 per cent.

The US Dow Jones Industrial Average fell over 2 per cent in Thursday’s trade.

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