{"id":17020,"date":"2025-11-07T16:53:52","date_gmt":"2025-11-07T11:23:52","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=17020"},"modified":"2025-11-07T16:53:52","modified_gmt":"2025-11-07T11:23:52","slug":"k-v-kamath-says-india-right-to-wait-on-ai-backs-strong-valuations-and-ipo-market","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/k-v-kamath-says-india-right-to-wait-on-ai-backs-strong-valuations-and-ipo-market\/","title":{"rendered":"K.V. Kamath Says India Right to Wait on AI; Backs Strong Valuations and IPO Market"},"content":{"rendered":"

K V Kamath Says India Right to Wait as AI Hype Plays Out; Supports Strong Valuations, IPO Boom, and Banking Reforms<\/p>\n

Veteran banker K V Kamath believes India\u2019s measured approach toward AI adoption, its resilient IPO pipeline, and ongoing banking reforms reflect the country\u2019s maturity in balancing innovation with prudence.<\/p>\n

At the Global Leadership Summit 2025, K.V. Kamath, Chairman of Jio Financial Services and one of India\u2019s most respected financial minds, cautioned against rushing into the global artificial intelligence (AI) frenzy. Comparing the current AI enthusiasm to the early stages of the dot-com boom, Kamath said India\u2019s strategy of waiting for technologies to mature could give it a long-term edge.<\/p>\n

\u2018Better to Wait Than Pay the Early-Mover Premium\u2019<\/h2>\n

Kamath remarked that while AI represents transformational potential, much of the global excitement is still speculative. \u201cA bit of the hype has to die down before the true economic value becomes clear,\u201d he said, drawing parallels to the late 1990s internet bubble, when companies went public without sustainable business models.<\/p>\n

He noted that India\u2019s historical tendency to adopt technology at later, more cost-effective stages has consistently paid off. \u201cWe lose nothing by waiting out six months to two years and joining the bandwagon when costs have come to what I call reasonable levels,\u201d Kamath said.<\/p>\n

He emphasized that India should not succumb to a fear of missing out (FOMO). \u201cBeing late to the party has always been good for us,\u201d he said, suggesting that waiting allows India to deploy proven technologies without bearing early-stage risks or inflated costs. \u201cBetter be out of it at this point,\u201d Kamath added.<\/p>\n

Also Read : Finance Bill 2026 Expected to Bring Faster GST Registration and 90% Automatic Refund Mechanism<\/a><\/p>\n

AI Hype Mirrors Dot-Com Era\u2014but with Real Foundations<\/h2>\n

Kamath acknowledged that the AI revolution is more rooted in tangible technological progress than the dot-com bubble ever was. However, he said speculative overreach still exists, especially as global companies race to integrate AI into every aspect of business without clear revenue models.<\/p>\n

\u201cThe enthusiasm is understandable,\u201d he said, \u201cbut until the hype settles and sustainable monetisation becomes visible, India\u2019s conservative stance is the right one.\u201d<\/p>\n

\u2018Right Price\u2019 for a Growing Market<\/h2>\n

Shifting focus to India\u2019s equity markets, Kamath defended current stock valuations, calling them appropriate for a high-growth economy. \u201cFor a growing economy, this is the right price,\u201d he said, while acknowledging that certain stocks might show pockets of exuberance.<\/p>\n

Kamath dismissed concerns that higher valuations might discourage foreign investors. He said India\u2019s consistent growth trajectory and institutional strength justify premium valuations. \u201cInvestors should see it as a reflection of confidence, not overvaluation,\u201d he noted.<\/p>\n

Buoyant IPO Market Reflects Strong Corporate Governance<\/h2>\n

On the subject of India\u2019s booming IPO market, Kamath said the surge in new listings\u2014particularly in technology and fintech sectors\u2014signifies a maturing economy. \u201cThe entry of new-age firms into public markets will strengthen India\u2019s core by improving governance and transparency,\u201d he said.<\/p>\n

He described the vibrant IPO pipeline as a sign of deepening capital markets and an expanding investor base. \u201cIPO activity is not just about raising money; it\u2019s about companies being accountable to the public,\u201d Kamath added, pointing out that better disclosure standards will create stronger, more credible institutions.<\/p>\n

India\u2019s Growth Story and Domestic Capital Strength<\/h2>\n

Kamath reiterated his optimism about India\u2019s economic outlook, stating that the country\u2019s long-term growth runway remains intact. \u201cWe should aspire for 10 percent growth,\u201d he said confidently, noting that India now has a broader range of funding instruments than ever before.<\/p>\n

He pointed to the growing role of InvITs, REITs, and deep capital markets in supporting infrastructure and corporate growth. \u201cQuestions about funding India\u2019s growth are no longer valid,\u201d Kamath said, crediting the government\u2019s policies for mobilizing domestic capital efficiently.<\/p>\n

Banking Consolidation Seen as a Timely Reform<\/h2>\n

Praising the government\u2019s ongoing consolidation in the public sector banking (PSB) space, Kamath called it a \u201ccorrect move at this point in time.\u201d He said merging state-run banks while the economy is strong allows for smoother integration and creates the scale needed for a digital, technology-driven financial system.<\/p>\n

\u201cConsolidation brings scale, bulk, and efficiency,\u201d Kamath explained, adding that the reform would make PSBs more competitive and agile.<\/p>\n

He also supported raising the foreign institutional investor (FII) cap in public-sector banks from 20 percent to 49 percent, arguing that it would provide a level playing field with private banks and attract more global participation. \u201cLet them compete on equal terms,\u201d he said.<\/p>\n

A Cautious Yet Confident Outlook<\/h2>\n

In conclusion, Kamath\u2019s message was one of balanced optimism. He urged policymakers and investors to maintain discipline amid global technological hype, while continuing to build on India\u2019s strengths in capital formation, financial inclusion, and governance.<\/p>\n

\u201cIndia\u2019s story is one of patience and preparation,\u201d Kamath said. \u201cWe don\u2019t need to chase trends\u2014we can lead when the time is right.\u201d<\/p>\n