Uday Kotak: No bubble, solutions exist to deal with problems
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Uday Kotak on Stock Market: Amidst the big fall in the Indian stock market, the statement of banking sector veteran Uday Kotak has awakened hope among investors. On the concerns raised about the high valuation of Indian markets, he said that the markets are not in the bubble zone. Uday Kotak said at a conference organized by the Securities and Exchange Board of India (SEBI) that there may be some ‘initial surge’ in the market and it may be ‘a little bubbly’, but it is not out of control. This statement of Kotak, founder and non-executive director of private sector Kotak Mahindra Bank, is important in the context of the statement given by SEBI Chairperson Madhavi Puri Buch two days ago. He had said that there is a boom situation in smallcap and midcap stocks and SEBI is thinking of bringing a possible consultation paper in this regard. It would not be appropriate for the bubble to continue to form, because when it bursts, investors would be adversely affected. that is not good. After his statement, the stock market crashed badly.
Read Also: After the big fall in Sensex-Nifty, how will be the stock market today, know what signals are being received.
Things not out of control: Kotak
Uday Kotak said in the presence of SEBI chief that I believe that we are nowhere near that risk at this time and there are enough checks and balances in our system today to compare ourselves to the serious bubble area. He said there may be an ‘initial surge’ in the market and it may even be ‘a little bubbly’, but things are not out of control. As long as we monitor and manage it well, we can achieve sustained capital formation going forward. With this, Kotak pitched for greater quality on the taxation front between equities and bonds as asset classes to make things clearer for investors and encourage right grouping as per preferences. Advocating making the rupee the preferred option over the US dollar to organize global trade, he said that we need to make a 10-year plan on this. ,language input,
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