Logistics shares were in focus on Wednesday after the government on Tuesday approved 100 per cent foreign investment in marketplace e-commerce companies.
The formalising of rules for the first time for the multi-billion dollar e-commerce sector will also give a big boost for the logistics sector, analysts said.
"An explicit position from the government on where it stood with reference to e-commerce has been long overdue. In that sense, it is good that some clarity has been provided," said Vivek Gupta, a partner at BMR Advisors.
Gati, Blue Dart Express, Snowman Logistics, Transport Corporation of India and Allcargo Logistics shares were up between 2 per cent and 3 per cent.
In a notification on Tuesday, the commerce ministry said it would allow 100 per cent foreign direct investment in marketplace e-commerce companies, which would also be allowed to provide services including warehousing, inventory and payments processing to merchants.
The ministry however said foreign investment in inventory-based e-commerce companies, where goods sold are owned by the online retailer, would still not be allowed.
Bank of America Merrill Lynch has forecast Indian e-commerce will surge to $220 billion in value of goods sold by 2025 from about $11 billion last year, outpacing growth in bricks and mortar retail. (With Reuters Inputs)
Logistics shares were in focus on Wednesday after the government on Tuesday approved 100 per cent foreign investment in marketplace e-commerce companies.
The formalising of rules for the first time for the multi-billion dollar e-commerce sector will also give a big boost for the logistics sector, analysts said.
"An explicit position from the government on where it stood with reference to e-commerce has been long overdue. In that sense, it is good that some clarity has been provided," said Vivek Gupta, a partner at BMR Advisors.
Gati, Blue Dart Express, Snowman Logistics, Transport Corporation of India and Allcargo Logistics shares were up between 2 per cent and 3 per cent.
In a notification on Tuesday, the commerce ministry said it would allow 100 per cent foreign direct investment in marketplace e-commerce companies, which would also be allowed to provide services including warehousing, inventory and payments processing to merchants.
The ministry however said foreign investment in inventory-based e-commerce companies, where goods sold are owned by the online retailer, would still not be allowed.
Bank of America Merrill Lynch has forecast Indian e-commerce will surge to $220 billion in value of goods sold by 2025 from about $11 billion last year, outpacing growth in bricks and mortar retail. (With Reuters Inputs)
Logistics shares were in focus on Wednesday after the government on Tuesday approved 100 per cent foreign investment in marketplace e-commerce companies.
The formalising of rules for the first time for the multi-billion dollar e-commerce sector will also give a big boost for the logistics sector, analysts said.
"An explicit position from the government on where it stood with reference to e-commerce has been long overdue. In that sense, it is good that some clarity has been provided," said Vivek Gupta, a partner at BMR Advisors.
Gati, Blue Dart Express, Snowman Logistics, Transport Corporation of India and Allcargo Logistics shares were up between 2 per cent and 3 per cent.
In a notification on Tuesday, the commerce ministry said it would allow 100 per cent foreign direct investment in marketplace e-commerce companies, which would also be allowed to provide services including warehousing, inventory and payments processing to merchants.
The ministry however said foreign investment in inventory-based e-commerce companies, where goods sold are owned by the online retailer, would still not be allowed.
Bank of America Merrill Lynch has forecast Indian e-commerce will surge to $220 billion in value of goods sold by 2025 from about $11 billion last year, outpacing growth in bricks and mortar retail. (With Reuters Inputs)
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