Walmart-owned Flipkart and fashion marketplace Myntra continue to show strong consumer engagement despite broader concerns around slowing discretionary spending, according to a report by Bank of America (BofA), which said its recent channel checks found no visible signs of weakness in value commerce or online fashion demand.

The brokerage said investor concerns that inflationary pressures and softer consumer spending could hurt e-commerce growth have not materialised so far. Its checks indicated that value-commerce platforms continue to witness healthy order momentum, while third-party logistics companies have not seen any slowdown in shipment volumes linked to e-commerce demand.

“Contrary to investor perception that lower discretionary spending may impact value-commerce GMV, our checks indicate that there are no signs of a slowdown,” BofA said in a sector report released on Friday.

The report noted that e-commerce parcel shipments handled by logistics firms remain robust, suggesting steady order flow across large online retail platforms. BofA added that logistics providers have not reported any material impact from either value-commerce or broader e-commerce shipments.

For fashion, the brokerage highlighted strong user engagement trends. Sensor Tower data cited in the report showed Myntra continuing to widen its lead over competing fashion platforms in terms of daily active users, underscoring its position in India’s online fashion market.

The findings come at a time when investors have increasingly scrutinised consumer internet companies for signs of demand moderation amid elevated inflation and macroeconomic uncertainty.

BofA said its broader assessment of India’s internet sector points to stable growth across most consumer technology categories, including e-commerce, fintech, quick commerce and online travel. It added that concerns around a sharp slowdown in consumer demand appear overdone based on current market checks.

The report also suggested that internet companies could benefit from valuation re-rating if growth remains resilient, noting that recent corrections in technology stocks have largely been driven by concerns around slowing growth and the impact of artificial intelligence on global internet businesses.

For Flipkart and Myntra, the brokerage’s findings indicate that consumer demand, particularly in value-led retail and fashion categories, remains intact heading into the second half of the year.

Published on June 19, 2026