Uday Kotak says nowhere near bubble territory after SEBI chief's 'froth' warning

"The time has come for us to foresee over the next 10-20 years for India's growth and development is how can India look at improving its position on the currency side to get larger and larger positioning as a potential currency of trade on its capacity," he said.

Kotak's comments comes days after SEBI Chairperson Madhabi Puri Buch said there is froth in certain segments of the market. SEBI is concerned about the "over exuberance" and "froth" building up in some pockets of the broader market. Buch has said that valuations of some stocks in mid and smallcap segment seem to have "gone off the charts".

The capital markets regulator has suggested mutual fund trustees look at whether lump sum investments into the small- and mid-cap funds are appropriate.

It is not appropriate to allow the froth to keep building, the SEBI Chairperson said on Monday.

Recently, the markets regulator directed mutual funds to disclose stress test results of small- and mid-cap funds from March 15, to assess the time taken to exit positions in times of stress.

Since the beginning of 2023, the Nifty small-cap 100 and mid-cap 100 have risen 58% and 54%, respectively, outperforming the 23% rise in the benchmark Nifty 50.

Speaking to CNBC-TV18, technical analyst Mitessh Thakkar projected a further 2-3% downside for the smallcap index as some of its indicators on the charts are showing signs of exhaustion.