14 March 2024 – Veteran banker Uday Kotak has weighed in on the current market dynamics, asserting that there are no signs of a bubble. Despite recent warnings from SEBI about frothiness, Kotak believes that existing checks and balances are sufficient to prevent any major issues.
Kotak highlighted the market’s dynamism, particularly in the futures and options category, as indicative of growth but stopped short of suggesting an imminent bubble. While acknowledging some level of frothiness in the market, Kotak emphasized that it remains manageable and not yet out of control. His remarks follow SEBI Chairperson Madhabi Puri Buch’s expression of concern regarding frothiness in small- and mid-cap stocks.
Speaking at the SEBI-NISM Research Conference, Kotak also addressed the need for regulation and policy formation regarding cryptocurrency. With Bitcoin’s surge to around $70,000, tripling in value over the past year, Kotak noted the global trend of legitimizing crypto investments.
Acknowledging the potential for cryptocurrencies to divert resources away from traditional capital formation, Kotak underscored investors’ focus on protecting their assets amidst the evolving landscape.
Uday Kotak’s statements come amidst growing concerns about market frothiness, with SEBI’s recent cautionary remarks echoing similar sentiments.
Conclusion:
Uday Kotak’s assertion contrasts with recent concerns raised by SEBI regarding frothiness in small- and mid-cap stocks. While acknowledging some frothiness, Kotak maintains that the market remains under control, with no signs of an impending bubble. Additionally, he underscores the importance of regulating cryptocurrency amidst its increasing adoption globally.
