'Stock Market Not A Casino...': Uday Kotak Warns Investors Against 'Cruise Mode' And Speculation

In an exclusive interaction with Republic Media Network Editor-in-Chief Arnab Goswami under the "Legends" series, veteran banker and entrepreneur Uday Kotak shared powerful insights on India’s economic mindset, stock market trends, and the importance of sustainable entrepreneurship.

Uday Kotak began by cautioning against a complacent attitude he describes as “cruise mode.”

"India is a country. India is too much in what I call the cruise mode. We believe we are all cruising along," he said, highlighting how a sense of comfort can lead to stagnation in long-term growth.

 

Easy Money in the Stock Market

Kotak raised concerns about the growing allure of quick gains in stock markets overshadowing the drive for building real businesses.

"Everybody wants to be in the stock market. Why should I build or run or operate a manufacturing company when I can make 15% in the stock market or 20% in the stock market by investing in small and mid-cap stocks?" he questioned.

He warned that this speculative trend might deter entrepreneurship and weaken India’s industrial foundation, which is vital for creating jobs and long-term economic stability.

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Stock Market’s True Purpose

Emphasising that markets must serve as engines of growth rather than mere gambling platforms, Kotak said, "Think about the stock market not as a casino. Think about it as a place where you have capital formation for the country. That's great. And price discovery. The core of a stock market is a capital formation place for the country and a price discovery for investors. And when you forget these two, there is a challenge."

He further drew on the wisdom of British economist John Maynard Keynes, "Speculators are like bubbles on a steady stream of enterprise. That's fine. The problem arises when the enterprise becomes a bubble. And we have to avoid that."

Championing Entrepreneurship

Uday Kotak (born 15 March 1959) is an Indian billionaire banker and the founder of Kotak Mahindra Bank. He stepped down as CEO in September 2023 and now serves as a non-executive director, with his son Jay Kotak leading the bank’s digital operations.

In the early 1980s, Kotak chose entrepreneurship over a lucrative corporate job, gradually expanding into stockbroking, investment banking, insurance, and mutual funds. In 2003, his company became the first in India to receive a banking license from the RBI, marking the birth of Kotak Mahindra Bank.

Ranked 18th on Forbes India’s 100 richest list in October 2024 with a net worth of $14.1 billion.

Republic Media Network's 'Legends' Series

This session was part of Republic Media Network's "Legends" series, an ongoing tribute series celebrating iconic Indians who have shaped the nation through excellence and inspiration. After powerful episodes honouring tennis icon Leander Paes and sarod maestro Ustad Amjad Ali Khan, this edition featured Uday Kotak, a visionary leader who transformed Indian banking and inspired generations of entrepreneurs.

Presented by Ravin Group and co-powered by Radico Khaitan and Reliance Digital, the session explored Kotak’s legacy, his views on India’s entrepreneurial ecosystem.