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.