Wondering if you are up to speed with topics that are likely to pop up at your upcoming party? Here’s a list of things that happened over the last week, that you should know about:
Walmart buy’s Flipkart:
Known as the largest ever e-commerce acquisition U.S.A’s multinational retail corporation Walmart bought 77% of India’s Flipkart for $16 billion.
Why you ask…
Walmart has been eyeing Indian markets for years, but for a multi-brand company like itself to come and set shop in India is kind of not that simple. (Only 51% Foreign Direct Investment in multi-brand retail is allowed subject to ‘terms and conditions’). That’s why in what seemed like a desperate attempt to tap Indian markets Walmart bought loss-making Flipkart.
What it means for you:
As a consumer, this deal means more products at better prices, increase in jobs, better technology, efficiency in supply chain management, and better customer service.
What it means for e-commerce:
On the flipside, smaller and medium e-commerce players might find it tough to fight the private brands bought in by Amazon & Walmart and eventually our e-commerce space would be dominated by 2 American corporations. Yay to supremacy!
It’s all about the polls:
Check out how the economy reacted to the Karnataka elections
Early on Tuesday when BJP was expected to win Karnataka elections markets reacted by rising by 400 points. But the minute opposition parties JDS and Congress indicated a coalition the election swung in their favor erasing the 400 point gains. Our advice: Don’t panic with this volatility if you’re a long-term investor. Markets will move based on the growth of companies post these 24-48 hours.
Wonder why petrol in Karnataka was the same as before despite the world panicking about the recent oil price hike? Indian oil companies are mandated to revise petrol and diesel prices every day but in the past few weeks, they had refrained from doing so. As per speculation, the government was deliberately absorbing the increased oil costs to gain votes for Karnataka elections. And just a day after the elections a rise of 17-21 paisa on petrol and diesel was announced.
Rupee & Bonds
With uncertainty about the government in Karnataka, the rupee fell to Rs. 68.07 against the dollar for the first time since January 2017. The rupee wasn’t the only loser from elections, bond prices have fallen as well.
Considering all this, RBI is likely to raise interest rates in their next monetary policy meeting this June.
Now that you know these topics, the next time someone mentions them you know what to say.
If there are any such topics spoken about at a party that have made you feel out of the loop, write to us at email@example.com and we will cover it in our next edition.