Bank credit picks pace as economy revives, BFSI News, ET BFSI

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Lenders are seeing a pick-up in loan demand with demand from medium sized firms and retail borrowers as the economy is slowly coming back on track as COVID restrictions ease.

Bank credit rose 6.8 per cent in October compared to 5.1 per cent in the same period a year ago, according to the latest figures released by the Reserve Bank of India on Wednesday. Outstanding credit amounted to Rs 110.5 lakh crore as of October 22, up Rs 7 lakh crore over a year.

The pick up in loan demand is largely due to the push from government schemes even as large corporates and top rated borrowers continue to rely on capital markets and the overseas markets where they manage to raise funds at much cheaper rates. India’s Weighted Average Lending rates were at 7.20% in September, according to the RBI data. At the same time, the average rates for triple-A rated five-year corporate bonds were at 6% and at 5.29% for three-year maturity, show Bloomberg data compiled by ETIG

The latest data on sectoral flow of credit offtake that lending to Medium sized firms rose 49 per cent year-on-year to Rs 1.75 Lakh crore as of end September compared to the same period a year ago. Much of the lending is reckoned to be under the government’s Emergency Credit Line Guarantee Scheme (ECLGS) MSME sector, under which the government provides 100% Guarantee to banks in respect of eligible credit facility extended by it to its borrowers.

In addition consumer durable loans have risen by 40 per cent compared to 14.9 per cent in the same period a year ago, with borrowers taking advantage of the reduced interest rates. With the government’s renewed thrust on the social sector, lending to infrastructure more than doubled to Rs 1323 crore in September from Rs 1081 crore a year ago.

On the liability side, the pace of deposit pick-up has slowed down to 9.9 per cent compared to 10.1 per cent in the same period a year ago. But deposit growth still continues to outpace the credit growth. In absolute terms banks raised almost double the amount of deposits at Rs 14 lakh crore than the amount they lent during the period.



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SBI, Bharti Airtel seen as top Muhurat session picks for 2021, BFSI News, ET BFSI

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Mumbai, Stocks of State Bank of India as well as Bharti Airtel have topped the list of scrip that have been recommended as the top Muhurat session picks by leading brokerage houses.

According to Motilal Oswal Financial Services (MOFSL), in terms of technical and derivatives picks for Samvat 2078, the rollover of SBI stock has been intact at 93 per cent from the last 2 months which indicates longs are upright in the scrip with more than 10 per cent price increase in the October series.

“One can look for ‘Bull Call Spread‘ opportunity here by buying at Rs 510 call and selling at Rs 540 call of the November series at a net premium cost of around 10 points.”

Other top stock picks from MOFSL are Larsen & Toubro, Trent, and Bata.

For Samvat 2078, the brokerage house expects a boost coming to sectors such as travel and tourism, real estate, and ancillary industries.

“Equity markets had a historical journey in Samvat 2077, as it touched new life time highs with Nifty and Sensex surpassing 18,000 and 60,000 mark, respectively, for the first time in history.”

“The recent sprint (in Nifty) to 15,000 in Feb ’21 and 18,000 in Oct ’21, from pandemic lows of 7,600 in Mar ’20 – amid lockdowns and other health challenges – has been led by a benign global liquidity, containment of Covid-19 cases, significant pickup in the pace of vaccination, sharp recovery in corporate earnings and a market-friendly budget.”

Besides, HDFC Securities have recommended Bharti Airtel as a top pick this Muhurat trading session.

As per HDFC Securities: “Pricing competition with Reliance Jio, regulatory and technological changes and adverse currency movement are key risks faced by the company. However, strong market position in the domestic mobile and non-mobile segment, diversification across businesses, healthy operations in Africa, high financial flexibility makes Bharti Airtel attractive for investment.”

“We feel Investors can buy the stock at LTP and add on dips to Rs 623 for a target of Rs 810.”

Furthermore, the brokerage house said that last year before Diwali, India was grappling with the aftermath of the first Covid-19 wave.

“There were considerable uncertainties on how the pandemic will impact India and the globe. Stock markets recovered from a steep Covid-19 induced fall and benchmark Nifty was pushing near pre-Covid all-time highs of 12,000 levels. Last year’s Diwali picks were issued in such an uncertain environment.”

“From those turbulent times to this Diwali, the pendulum has swung the other way. Markets have rallied 50 per cent since last Diwali and many stocks have zoomed to new all-time highs.”

The brokerage house also recommended Alembic Pharma, Cadila Healthcare, Credit Access Grameen, Gujarat Gas, ICICI Bank, Infosys, and Mphasis.

The special Muhurat trading session, held every year on Diwali day, is considered to be auspicious for stock market trading.

The trading during the special session will commence from 6.15 p.m. and end at 7.15 p.m. on Thursday.

It is believed that the Muhurat trading on this day brings wealth and prosperity throughout the year.

This ritual has been observed for ages by the trading community.

The Indian equity market will be closed on Friday, November 5, to mark Diwali Balipratipada.

–IANS

rv/sn/vd



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What happens to your cryptocurrency if you die?, BFSI News, ET BFSI

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If you’re merely dipping your toe in cryptocurrency, it can be hard to imagine your crypto as something worth talking to an estate attorney about. But that fun money could grow to a significant percentage of your total investments, sometimes overnight. Sorry to be a downer, but YOLO – so make a plan for your crypto in the event you pass away.

Crypto accounts aren’t like traditional investment accounts. They can be more vulnerable to security issues, and you generally can’t name a beneficiary. For example, if you store your crypto on a physical device at home and a few friends know your key – a password of sorts that grants access to a crypto wallet – one of those so-called friends could wander into your house and steal your crypto as easily as they could walk off with your great-grandmother’s diamond earrings. Or, if you shared the keys with no one, your crypto is lost forever.

It’s important to understand how to safely store your crypto and communicate your wishes with your loved ones, just like you would with any other valuable asset.

KNOW HOW YOUR CRYPTO IS STORED
You trade and store crypto in wallets, but not the leather kind. Crypto wallets can either be digital and managed on an app or website, or physical like a thumb drive. The kind you choose depends on what you intend to do with your crypto.

HOT WALLETS:
These are used for trading and purchasing crypto. The upside is they’re typically free and convenient, but the downside is they’re less secure because they’re always connected to the internet.

COLD WALLETS:
These are used to store crypto for a longer period of time. Think of it like putting your crypto in a freezer.

The hot wallet is like a checking account – with money moving in and out – while the cold wallet is more like a savings account, where you park money for a longer time. You can have both at the same time.

Whoever holds the keys – that is, who maintains custody over a password of randomly generated numbers and letters – has access to your crypto. It could be you, a third-party crypto exchange or a hybrid of both.

“Don’t keep more than you’re willing to lose on a third-party exchange as a long-term solution,” says Alex Mejias, founder and managing attorney at James River Law in Richmond, Virginia. “You don’t control the keys. They could freeze your funds or get attacked.” Mejias recommends a self-custody or hybrid option as the value of your crypto grows.

KEEP YOUR CRYPTO SECURE, YET ACCESSIBLE
A cold wallet can be a small physical storage device that’s easy to misplace. Your cold wallet requires a PIN code for access, plus you set up a recovery phrase as a backup in case you lose your key. According to Mejias, a fireproof safe at home or a safety deposit box at a bank is a must, but don’t store your cold wallet in the same place as the note containing your key, PIN and recovery phrase. If someone finds all of those items together, it’s bye-bye Bitcoin.

Above all, design a storage method that makes sense. “Don’t get so cute that you make some complicated system that you can’t remember,” Mejias says. He’s heard of people writing down their keys and cutting the paper into three pieces, hiding each piece in a separate location. “It sounds like a good idea, but it’s a horrible idea. If you lose one of those three, it’s gone forever. You’ve tripled your risk.”

MAKE A DETAILED PLAN FOR LOVED ONES
Name a beneficiary in your will and add a document to your estate plan that lists your crypto assets and any passwords, PINs, keys and instructions to find your cold wallet. If you have an account at a cryptocurrency exchange, your beneficiary can contact customer support to notify them of your death.

According to a Coinbase representative, there is a process in place to guide next of kin, including one-on-one assistance from a Coinbase analyst. Gemini requires a death certificate and power of attorney to initiate a transfer out of a deceased person’s account.

“We hope to simplify this process in the future, so we are working to add account beneficiaries functionality to our platform,” a Gemini representative said in an email.

UPDATE YOUR PLAN AND YOUR WALLET
Ensure that your assets will go to the right people by keeping your estate plan updated, especially after a life change like marriage or divorce. Provide up-to-date instructions so beneficiaries can access your assets. Cold wallets need maintenance, too, in the form of periodic firmware updates. This can help lessen the burden on your loved ones and hopefully prevent fights as they settle your estate after your death.

“Crypto has the potential to be a very explosive thing because the value can be so huge so quickly,” Mejias says. “When you think about five, 10 years from now, we’re potentially talking about a whole lot of money.”

This article provides information for educational purposes. NerdWallet does not offer advisory or brokerage services, nor does it recommend specific investments, including stocks, securities or cryptocurrencies.



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From Nigeria to India, Gen Z taps apps to invest, BFSI News, ET BFSI

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There’s a new generation of investors in town. They’re young, they get their tips on YouTube, and they’re armed with apps that make the stock markets more accessible than ever before.

US investment app Robinhood has made a splash in the West with its mission to open the markets to “everyday people”, but from Nigeria to India, Gen Z are flocking to homegrown equivalents.

“I don’t really care about my college, to be honest. It’s all market, market and market,” said Delhi student Ishan Srivastava, who started trading last December.

Srivastava uses a handful of Indian trading apps, including Zerodha and Upstox, and often gets his financial advice from YouTube. The ambitious 20-year-old hopes to build a diverse investment portfolio and then retire by 45.

In India in particular, the investment revolution has been aided by a boom in “demat” accounts — easy-to-open electronic accounts for holding financial securities, equity or debt.

But a similar app-led investment craze is also underway 8,000 kilometres (5,000 miles) away, in Nigeria.

– Banks ‘less attractive by the month’ – The country’s economic hub Lagos has long been known for its hustle and celebration of success, but the weakness of the naira currency has put extra pressure on youths to make cash as the cost of living has rocketed.

Nigerians have flocked to local apps such as Trove and Risevest which allow them to invest in US stocks, widely seen as a means of protecting wealth as the naira nightmare continues.

“I had the option of putting the money in the bank, but that is looking less attractive by the month,” said 23-year-old Dahunsi Oyedele.

“Sometimes I put my money in Risevest and get some returns in a week. Imagine getting one or two percent returns on 100,000 naira ($240) each week — that’s small, but it means a lot.”

For a few months after losing his job as a tech journalist due to the pandemic, Oyedele covered his rent by trading cryptocurrencies.

He is far from alone in turning to speculation during the Covid-19 crisis, as a combination of mass joblessness, stay-at-home orders and — for the fortunate — underused savings have encouraged people worldwide to dabble in trading for the first time.

In the US alone more than 10 million new investors entered the markets in the first half of 2021, according to JMP Securities, some of them drawn in by social media hype around “meme stocks” like GameStop.

Worldwide, the new arrivals are largely young. Robinhood’s median US customer age is 31; India’s Upstox says more than 80 percent of its users are 35 or under, a figure matched by Nigeria’s Bamboo (83 percent).

Trading apps have lowered the barriers to entry for youngsters in part by offering fractional trade.

A share in Amazon, for instance, is currently worth more than $3,000 — unaffordable for the average Gen Z or slightly older millennial. But a small fraction of that share might be within reach, particularly on an app that charges zero commission.

– Flirting with danger? – Trading apps may have been hailed as democratising access to the markets, but critics say they could also make it easier for inexperienced young investors to get into hot water.

In the US, the Securities and Exchange Commission is investigating whether apps are irresponsibly encouraging overtrading using excessive email alerts and by making investment feel like a game.

And Britain’s Financial Conduct Authority warned in March that the new cohort of young investors — who skew in the UK towards being women and from minority backgrounds — have more to lose.

Nearly two thirds of the new investors it surveyed said “a significant investment loss would have a fundamental impact on their current or future lifestyle”, the FCA found.

“This newer group of self-investors are more reliant on contemporary media (e.g. YouTube, social media) for tips and news,” the watchdog noted.

“This trend appears to be prompted by the accessibility offered by new investment apps.”

Some young investors have already been burned.

Mumbai-based product designer Ali Attarwala is giving trading a break after a bad experience with cryptocurrencies earlier this year.

“These apps make it easy to buy speculative assets like crypto, but there is still a lot of volatility in these new assets,” the 30-year-old told AFP.

Srivastava has also had ups and downs, but he sees his losses as part of the learning experience.

“When I started, I blew up almost 50 percent of the capital,” he said.

“I don’t treat them as my losses, but like education fees.”



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No HC relief for Tatas on use of their trademark as crypto coin, BFSI News, ET BFSI

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Bitcoin may be a household name today, but there are various types of cryptocurrencies that exist. Ever heard of a cryptocurrency bearing the trademarks ‘Tata coin’ or ‘$Tata’?

Tata Sons, the holding company of the Tata Group, was unsuccessful in its bid to seek a permanent injunction from the Delhi high court restraining Hakunamatata Tata Founders and others from using the trademark ‘Tata’ as part of the name under which the cryptocurrency was made available to the public or as part of their corporate or domain name.

The domain names tatabonus.com and hakunamatata.finance that enabled the purchase and sale of the ‘Tata’ cryptocurrency were set up in June and May of 2021 respectively. The reason Tata Sons could not succeed is because it could not prove to the satisfaction of the court that the foreign parties (the defendants) intended to target India as a customer base.

No HC relief for Tatas on use of their trademark as crypto coinThe defendants in this lawsuit, filed by Tata Sons with the Delhi high court, were companies based in the US and the UK with no India presence. They were located outside the sovereign borders of India and statutorily outside the reach of the Trade Marks Act, 1999 and the Code of Civil Procedure, 1908. In this backdrop, the “intention to target India as a customer base was of paramount importance” for Tata Sons to make its case.

“The mere fact that the defendants’ cryptocurrency can be purchased by customers located in India and that, as a result, the plaintiff’s brand value may be diluted, even seen cumulatively, cannot in my view justify this court interfering with the defendants’ activities, or with its brand or mark,” held Justice C Hari Shankar.

The festive season can throw all your general perceptions about media ROI out of the window…

Apparently, the defendants’ cryptocurrency could be purchased — using the QR Code and the methodology indicated on the defendants’ website — by a customer located anywhere in the world. This factor therefore, too, cannot indicate any conscious targeting of the Indian customer base by the defendants. Nor do the websites or social media accounts prove any intent to target customers covered by the high court’s jurisdiction. “If at all they target customers, they target customers across the world,” the judge observed.

Tata Sons didn’t respond to an emailed query on the issue. Sources told TOI that Tata Sons is considering to pursue this case in the UK court.

Watch BE+ with Ambi Parameswaran: In conversation with industry leaders like Jasneet Bachal, Harish Narayanan, Deepali Naair, Siddhesh Joglekar and more



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RBI set to monitor digital banking and cyber security, asks banks to be vigilant too, BFSI News, ET BFSI

Banking & Finance

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RBI will soon launch a web-based supervisory system that will enable off-site and on-site monitoring of modern functions like digital banking, cyber security, said RBI deputy governor MK Jain. At the same time banks need to be careful in complying with rules and invest in technologies to meet the supervisory challenges as they experiment with new services in the post COVID world though ultimately its governance standards, business model, risk culture, and assurance functions will decide how well it fares in the long run, he said.

“For continuous engagement with supervised entities, a web-based and an end-to-end workflow automation system has been developed ( by RBI)” said Jain in a keynote address at a summit. It has various functionalities including inspection, compliance and incident reporting for cyber security, etc. with a built-in remediation workflow, time tracking, notifications and alerts, Management Information System reports and dashboards. “This is being launched shortly”.

With the proliferation of digital banking, cyber security has become an extremely important area of supervisory concern. To address this concern, the Reserve Bank has developed a model-based framework for assessing cyber risk in banks using various risk indicators, risk incidents. ” Cyber drills are conducted based on hypothetical scenarios”.

While a lot is being done in the cyber security space, these risks are continuously evolving in the dynamic environment we operate in, and hence there should be constant vigil and continuous enhancements of IT systems, warned Jain.

Globally, fintechs are challenging banks with more convenient offerings, better reach and lower cost to customers. Besides, developments in areas artificial intelligence, robotics and chat advisory, digitalisation, Distributed Ledger Technology, quantum computing, cloud arrangements, data analytics, new ways of remote, though have their benefits but are also generating new risks, Jain warned. Also, climate change, KYC / AML, cyber security, virtual currencies as well as increasing reliance on outsourcing are some of the other major challenges that will need to be addressed, he said.

Banks need to be agile and creative to stay ahead of the digital curve, but banks will have to align their products in compliance with existing laws and regulations. ” Financial institutions would need to experiment with new technologies and tailor their products and services in alignment with business strategy and in compliance with existing laws and regulations” Jain said. “Leveraging on technology will also require enhanced financial investments, building expertise and capacities, proper resource allocation and further strengthening of the operational capabilities”.



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Shopify survey, BFSI News, ET BFSI

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– Kruthikaa Lakshman

Contactless payments, especially UPI, is gaining traction this Diwali. Nearly 50% of festive shoppers said that they preferred to process payments via UPI as
opposed to any other form, a survey by e-commerce platform Shopify said.

The survey found that the preference for UPI remains consistent across both, online and offline shopping experiences.

The COVID-19 pandemic has had a lot to do with these trends, the survey said. Though the experience that predates the festival is anticipated by many, the
convenience and safety of online shopping has persisted by 76.9% of the shoppers this festive season, it added.

Shopify India released “The Festive Shopping Outlook Report 2021”, measuring consumer trends in the last month, in time for Diwali. Trends have shown that the festive shoppers who would traditionally begin buying for the season, a month in advance hadn’t done so this year.

With mobile phones and internet access to non-metro shoppers, more and more people were seen opting for the digital medium. Online shopping is prevalent after the pandemic has increased to larger areas of the country, according to the report.

60% shoppers use digital payments multiple times a week for festive season shopping: Survey

Contactless payment using radio frequency identification (RFID) or near field communication (NFC) is also constantly improving. The National Payments Corporation of India (NPCI) recently partnered with YES Bank to launch RuPay On-the-Go contactless payments solutions, which is further pushing shoppers to opt for contactless payments, the survey added.

Further, the survey said that the digital payments platform has been opened by Google Pay for use in contactless UPI patents as well.

In terms of what shoppers shopped for during the season, the survey finds that gold and precious metal jewellery, which have been traditional festive gifting favorites, seem to have fallen out of favor this year.

This year, most shoppers were seen investing in tech gadgets. Electronic gadgets, according to the survey, are all set to command maximum consumer gifting budgets with close to 42% respondents showcasing increased propensity towards it.



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As India pledges net-zero emissions, banks move to form common ESG framework, BFSI News, ET BFSI

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With India agreeing to achieve net-zero emissions by 2070, the onus is on banks to promote green finance. The Indian Banks’ Association is looking to create a common framework for environmental, social and governance (ESG) issues while carrying out credit assessment and include climate risk as part of their risk management policy, according to a report.

Banks have always been the backbone of India’s economic growth, and as the country pivots to sustainable growth, the banking sector will have to accelerate green lending, SBI Chairman Dinesh Khara had said earlier.

“A formal definition of green finance in India would enable more precise tracking of finance flows to the green sectors, which in turn would help design effective policy regulations and institutional mechanisms directed towards increasing both public and private investment in green sectors,” Khara had said.

Green finance definition

India’s green finance definition could be formed through a combination of adopting international practices, developing a set of principles for green economic activities and obtaining stakeholders’ views, he suggested.

“Unless banks are able to provide adequate credit to green projects and measure risk in their portfolio, the bank’s depositors and shareholders will continue to carry ESG (environmental, social and governance) risk that can erode returns.”

To support acceleration and green financing, he said, a number of structural changes will be needed in the traditional lending approach, including evaluation and certification of the green credentials of each project and understanding of the corporate road map to achieve net zero.

RBI‘s stance

The Reserve Bank of India also feels there is a need to mainstream green finance and devise ways for incorporating environmental impact into commercial lending decisions.

Addressing climate risk in the financial sector should be the joint responsibility of stakeholders as it would affect the resilience of the financial system in the long run, RBI Deputy Governor M Rajeshwar Rao said recently.

“As the risks and opportunities and financial impact arising from climate change vary across jurisdictions, this poses unique considerations for emerging economies like India. The challenge before us is to mainstream green finance and think of ways to incorporate the environmental impact into commercial lending decisions while simultaneously balancing the needs of credit expansion, economic growth and social development,” Rao said.

He noted that the global understanding of the systemic impact of climate change on the economy and the financial system as also its resultant impact on financial stability is evolving and, accordingly, the responses of central banks and supervisors around the world have also been developing.

RBI’s efforts

The RBI has been talking about green finance for many years and has taken various steps towards it. It has pushed, on the lines of corporate social responsibility for private companies, the concept of ESG principles into financing aspects. In April, the RBI joined the Network for Greening the Financial System (NGFS) in April 2021.

The NGFS, launched in December 2017 at the Paris One Planet Summit, is a group of central banks and supervisors from across the globe to share the best practices and contribute to the development of the environment and climate risk management in the financial sector. It is an institutional yet voluntary membership, which will also help mobilise mainstream finance to support the transition toward a sustainable economy.

“The RBI expects to benefit from the membership of NGFS by learning from member central banks and regulators and contributing to the global efforts on green finance and the broader context of environmentally sustainable development,” Rao had said in the speech.

NGFS and the Basel Committee on Banking Supervision’s Task Force on Climate-related Financial Risks (TFCR). RBI being a Basel Committee member was already part of TFCR.



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SBI Q2 earnings: State Bank of India’s profit soars 67% as provisions slide

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Slippages in Q2FY22 stood at Rs 4,176 crore, as against Rs 15,666 crore in the June quarter and the slippage ratio was 0.66% for the quarter.

State Bank of India’s (SBI) standalone net profit rose 67% year-on-year (y-o-y) to Rs 7,627 crore in Q2FY22 driven by an improvement in asset quality and a sharp drop in provisions. Dinesh Khara, chairman of SBI, said that after the Covid second wave receded, the asset quality outcomes in the September quarter turned out to be quite encouraging.

“The first quarter saw an elevated level of fresh slippages as collections were severely impacted due to restrictions on mobility and concerns around health and safety of our staff as well as customers. However, our ground level forces have rallied back in the second quarter,” Khara said.

Slippages in Q2FY22 stood at Rs 4,176 crore, as against Rs 15,666 crore in the June quarter and the slippage ratio was 0.66% for the quarter. Provisions dropped 98% y-o-y to Rs 189 crore and the credit cost stood at 0.43%. The gross non-performing asset (NPA) ratio fell 42 basis points (bps) sequentially to 4.9% and the net NPA ratio was down 25 bps at 1.52%. SBI’s total restructured book for resolution of Covid-related stress stood at Rs 30,312 crore, accounting for 1.2% of its loan book.

Khara said that loans which in Q1 had turned delinquent in the home loan and Xpress credit personal loan segments saw a pullback in Q2. In the small and medium enterprises (SME) segment, the bank was able to pull back or restructure loans as per the revised guidelines. “With the economic activity coming back, cash flows are restored and we are in a position to see better behaviour as far as borrowers are concerned. No major concerns are there related to asset quality because the underwriting has improved significantly and the collection machinery on the ground has become activated very well,” he added.

SBI’s net interest income (NII), or the difference between interest earned and expended, rose 10.7% y-o-y to Rs 31,184 crore. The net interest margin (NIM) rose 17 bps sequentially to 3.09%.

The bank’s gross advances grew 6.17% y-o-y to Rs 25.31 lakh crore as on September 30, 2021. Retail loans grew 15.2% y-o-y, while the corporate loan book shrank 4%. Khara said that working capital limits for large corporates are unutilised to the extent of 50%. However, SBI has a pipeline of Rs 1.15 lakh crore and it expects that term loans to the tune of Rs 2.25 lakh crore will be availed by companies. Sanctions worth Rs 4.6 lakh crore are still waiting to be availed, he said.

“As far as our overall advances growth is concerned, it stands at over 6% and we would like to see it growing up to 10%. Much of it could be a function of the real economy,” Khara said, adding that retail loans will continue to grow at a faster pace, going by the early signs seen in October. “This month we have seen decent demand from corporates too, and if that continues, we should be in a position to see decent numbers. The unutilised loan limits might decline from the current 50% to 30-35%,” he said.

Deposits grew 9.8% y-o-y to Rs 38.1 lakh crore as on September 30, with the current account savings account (CASA) ratio up 85 bps y-o-y at 46.24%.

SBI’s shares ended 1.14% higher than their previous close on the BSE at Rs 527.65 on Wednesday.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

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Uday Kotak cautions equity investors of risks ahead

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Moving forward, the equity markets will continue to march upwards and the long-term outlook continues to be intact.

Uday Kotak, MD & CEO of Kotak Mahindra Bank, in a message cautioned investors that markets had run ahead of the economic reality. “We have seen the markets going much ahead than the economic reality over the last 18 months and from Samvat to Samvat the markets have performed outstandingly for investors,” Kotak said.

He further emphasised the central banks’ efforts across the world, including India, to keep the liquidity taps open ever since the pandemic occurred in 2020. The move also resulted in strong inflows in the Indian capital markets for the last 16-18 months. “Central banks around the world, including in India, have opened up the flood gates of money,” he said.

Considering the surge in the number of retail investors, he also advised investors to plan both risks and returns during investing in the markets, taking into account the challenges that may occur in the times ahead. However, with the economy of the country improving significantly and that of China’s witnessing challenges, the banker said he continued to be optimistic about the markets moving forward. “Enjoy the market ride but also be aware of the consequences,” said Kotak.

Moving forward, the equity markets will continue to march upwards and the long-term outlook continues to be intact.

However, investors will continue to track global economies, the decision of central banks, and commodity and oil prices among other factors in the near-term.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

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