Current Market Events Pose No Risk To India's Financial Health, Says Uday Kotak

Billionaires Anand Mahindra and Uday Kotak have said the recent market events don't pose a risk to India's financial health or ambitions.

The comments come amid a rout of the Adani Group stocks following a report from short-seller Hindenburg Research alleging stock market fraud and manipulation.

In response, the group's Chief Financial Officer Jugeshinder Singh termed the report a "malicious combination of selective misinformation and stale, baseless, and discredited allegations that have been tested and rejected by India’s highest courts".

Kotak Mahindra Bank Ltd. Chief Executive Officer Uday Kotak said he sees "no systemic risk" to the Indian financial system from recent events.

However, he said, large Indian corporates rely more on global sources for debt and equity finance.

"This creates challenges and vulnerabilities. Time to further strengthen Indian underwriting and capacity building," Kotak tweeted on Sunday.

In a tweet on Saturday, Mahindra and Mahindra Ltd. chairperson Anand Mahindra said global media is "speculating whether current challenges in the business sector will trip India’s ambitions to be a global economic force".

"I've lived long enough to see us face earthquakes, droughts, recessions, wars, terror attacks. All I will say is: never, ever bet against India."

Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.