HomeMarket NewsMarket rally fuelled by massive $28 trillion central bank money, says ICICI Prudential’s S Naren

Market rally fuelled by massive $28 trillion central bank money, says ICICI Prudential’s S Naren

The bull run in the global market since the lows of March is fuelled by a massive $28 trillion central bank money, unlike that of previous market rally seen in 2003-2007 period, said S Naren, ED & CIO of ICICI Prudential AMC.

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By Sonia Shenoy   | Latha Venkatesh  November 13, 2020, 12:33:06 PM IST (Updated)

The bull run in the global market since the lows of March is fuelled by a massive $28 trillion central bank money, unlike that of previous market rally seen in 2003-2007 period, said S Naren, ED & CIO of ICICI Prudential AMC.



“We have had a phenomenal bull rally from the bottom of March and it has been one of the best bull rallies that we have seen after 2009 across the world. Having said that we have to accept that this has been a bull rally engineered by the global central banks led by the Federal Reserve and while I do agree that we are going to have broadening of the market rally that we have seen because it was a very narrow rally,” Naren told CNBC-TV18.

Nares is of the view that this was not like a 2003-2007 rally in certain respects.

“In 2003-2007 rally, you had a very conventional market rally where interest rates were normal. Today you have a $28 trillion or more than $20 trillion of central bank money which has fuelled the entire rally. Till the time it gets into price inflation I think you are going to have a very wide market rally.”

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