‘Markets ahead of economic reality over the last 18 months’

Veteran banker Uday Kotak has expressed confidence in the recovery of the Indian economy and has also cautioned investors on the risks associated with the bull run in the equity markets.

“We have seen the markets go much ahead of the economic reality over the last 18 months and from Samvat to Samvat the market has performed outstandingly for investors. We do need to keep in mind also the global backdrop,” Kotak, MD and CEO, Kotak Mahindra Bank, said in his Diwali message.

“…the Indian economy has recovered extremely well. And I am quite confident about the outlook for the Indian economy going forward. At the same time, we need to keep in mind that gains to investors have been front-ended in many ways. Therefore, what is expected of the economy has been priced in to a certain extent as we sit here on Samvat day,” he added.

New investors welcomed

He noted that there is a much broader base of investors and the number of people wanting to participate in capital markets has dramatically gone up.

“I would therefore welcome all of them to the new world of markets, which has changed very significantly in the post-pandemic era,” he said while cautioning them that just as markets can go up, investors need to plan the risk of markets at some point of time having their challenges in the time ahead.

“I continue to be optimistic about the markets with the Indian economy, in particular, doing well at a time when China is going through its challenges,” Kotak stressed. He also said that he expects interest rates to move up in the year ahead.

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