**WalMart shares also fell 2% on Friday, the market cap decreased by 40470 crores
**The revised policy of FDI in online retail in India has come into effect from 1st February
**Companies like Amazon will not be able to sell products of other companies with their stakeSan Francisco.
Amazon shares fell 5.38% on Friday in the US stock market. Due to this fall, the company’s market capitalization dropped to Rs 56.15 lakh crore from Rs 3.21 lakh crore. On Thursday, the company had expressed concern over the fact that India has changed the rules of e-commerce. The impact of this on show on the company’s shares on Friday. On the other hand, Walmart’s shares also fell 2.06%. Because of this, its valuation dropped to Rs 19.36 lakh crore from Rs 40,470 crore.
31% market share of Amazon in India
The revised policy of FDI in online retail has come into effect from 1st February. The rules in India have become stricter for foreign-invested e-commerce companies. Therefore companies like Amazon and Flipkart will not be able to offer exclusive deals. Also, they will not be able to sell the products of other stakeholders. Amazon has a 31% stake in India’s e-commerce market.
Looking at the business in India, companies like Amazon had appealed to the government to give some time and relaxation to the new rules of e-commerce. But, the government did not extend the deadline.
Amazon and Walmart are continuously expanding business in India. WalMart bought Flipkart’s 77% stake in May last year for 1.07 lakh crore. This is the world’s biggest deal ever in the e-commerce sector.
Amazon and Walmart may have an impact on the Indian business due to the new rules. Amazon’s growth in the international business in the December quarter has been slow. The company had announced quarterly results on Thursday.