India's Flipkart to raise USD 1.2 billion | Calamatta Cuschieri

The Maltese market closed in the green on Tuesday, with the MSE total index ending the session 0.558% higher to 8,184.893 points. The best performer was GO plc with a 3.03% jump to close at 3.40, followed by 2.04% surge of Bank of Valletta plc with a closing price 1.00 and 0.9% increase of Malta Properties Company plc to close at 0.56. There were no negative performance on stock market, while Simonds Farsons Cisk plc, International Hotel Investments plc and Malita Investments plc were active but closed unchanged.

Travel and leisure, and technology issues weighed on Europe's main stock market gauges, although a positive start to the US second-quarter corporate reporting season helped to stem losses. By the end of trading, the pan-European Stoxx 600 had fallen 0.84% to 367.40, led by a 2.68% decline in Travel & Leisure issues. Germany's Dax meanwhile ended the day off by 0.8% at 12,697.36, while Milan's FTSE Mibtel gave back 0.62% to 19,879.75.

Wall Street stocks finished on a positive note on Tuesday, following key earnings reports from some of the country's biggest banks. The Dow Jones Industrial Average ended the session up 2.13% at 26,642.59, the S&P 500 added 1.34% to 3,197.52, and the Nasdaq Composite was 0.94% firmer at 10,488.58.

India's Flipkart to raise $1.2 billion in Walmart-led funding

Flipkart will raise USD 1.2 billion in funding led by majority owner Walmart Inc, the Indian e-commerce firm said on Tuesday, as it looks to compete better with Amazon.com Inc in a coronavirus-hit market.

Besides Amazon, Flipkart faces competition from local online grocery upstart JioMart, backed by billionaire Mukesh Ambani, in a key growth market for e-commerce. Ambani’s Reliance Industries Ltd has received billions of dollars in recent weeks from major global firms for its digital arm, which is expected to roll out an online service for Indian grocers and small businesses.

Amazon’s revenues have soared this year due to higher sales of groceries and household staples during the coronavirus pandemic, and in India, the Jeff Bezos-led company is now hiring 50,000 temporary workers to meet a surge in online shopping.

Flipkart said it would use the funds, to be received in two tranches this fiscal year, to support the “development of its e-commerce marketplace as India emerges from the COVID-19 crisis.”

Coronavirus-induced lockdowns restricted business activities in India for much of April and May. India is currently grappling with a surge in infections, making it the third worst-hit nation behind Brazil and the United States.

This article was issued by Nadiia Grech, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.