HomeMarket NewsSurplus central bank liquidity likely to support market, says Morgan Stanley’s Sanjay Shah

Surplus central bank liquidity likely to support market, says Morgan Stanley’s Sanjay Shah

Sanjay Shah, country head & co-head, institutional equities division at Morgan Stanley, on Tuesday, said that surplus central bank liquidity is likely to support the market.

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By Latha Venkatesh   | Sonia Shenoy   | Anuj Singhal  June 8, 2021, 9:34:29 AM IST (Updated)

Sanjay Shah, country head & co-head, institutional equities division at Morgan Stanley, on Tuesday, said that surplus central bank liquidity is likely to support the market.



“Central banks, all over the world, are focused on liquidity as some kind of an antidote to what is happening because of COVID and the slowdown in growth. Therefore, we are in some kind of a sweet spot where economic growth is accelerating and its remaining robust, and at the same time liquidity is remaining in surplus,” he said while speaking to CNBC-TV18.

On investment themes, Shah said, “It’s always good to have some cash on the sidelines as some kind of insurance against any kind of a market fall. However, one thing is for sure, volatility is here to stay as the market continues to climb the wall of worry.”

“As far as India is concerned, we are talking about strong earnings growth emerging once COVID dies down and the numbers start coming. So, from that perspective, we are very comfortable. The obvious sectors to focus on would be the banking and financial services. Within that, insurance looks exciting to us and we are focused on it. Besides this consumer discretionary, capital goods and infrastructure were the focus of the government which continues to remain, and the private sector as well – that’s also an interesting area to watch out for,” said Shah.

For the entire interview, watch the video.

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