Uday Kotak On India’s ‘Savers To Investors’ Trend In Samvat 2082
Uday Kotak, founder and non-executive director of Kotak Mahindra Bank, has expressed his views on the Indian stock market and the ‘savers to investors’ trendline in his Diwali wishes, via a video message. According to Kotak, this trend will continue in India for the incoming Samvat 2082, driven by significant flows into mutual funds and equity markets.
Supportive Tax Regime
The current tax regime, which imposes higher tax on income and lower tax on gains, is also supportive of the ‘savers to investors’ trend. Furthermore, the government’s GST revamp and the zero tax up to 12 lakh change have also come to aid this shift by supporting the domestic economy.
Challenging Year For Investors
Although bullish about investing trends in the future, the founder acknowledged that Samvat 2081 was a difficult year for investors, marked by muted returns due to geopolitical tensions, wars, tariffs, and a flood of other uncertainties. These developments, according to Kotak, ‘clouded the horizon’ but Samvat 2082 will begin with more clarity.
Advice To Investors
Kotak advised investors to become more alert and even ‘paranoic’ in order to face a tougher world. ‘We should get out of our comfort, convenience and complacency zones to build an India and an Indian business which is ready to take on the world’, he stated. This advice is particularly relevant in the current market scenario, where investors need to be cautious and informed to make the most of their investments.
Focus On Sustainable Growth
Expressing his wishes for the corporate India, which contains the faith of countless investors, the founder said that he hopes to see them wake up to this challenge and focus on building companies sustainably for the future. This includes improving over time the earnings of the companies, ‘So that the current high PE ratios get justified and for investors to continue putting money into the equity markets at the securities firm’.
Medium-Term View
Kotak also advised firms to take a more medium-term view about their customers and said, ‘This excessive focus on churn as the basis of driving investor and saver behavior needs to change to make investors more committed and get sustained returns in the markets’. This approach will help companies to build strong relationships with their customers and create long-term value for their investors.
Conclusion
In conclusion, Uday Kotak’s views on the ‘savers to investors’ trend in India are insightful and relevant for investors and corporates alike. As the Indian stock market continues to evolve, it is essential for investors to be informed and cautious, and for corporates to focus on sustainable growth and building strong relationships with their customers. By following these principles, investors can make the most of their investments and corporates can create long-term value for their stakeholders.
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