Time to take money off the table as honeymoon period for India is over: Steen Jakobsen

In a chat with ET Now, Steen Jakobsen, Chief Investment Officer, Saxo Bank A/S, shares his views on market outlook.
ET Now: What is your outlook on India as markets are standing tall? We are the best performing market not only in the region but in the entire emerging market basket.

Steen Jakobsen: I congratulate on the excellent results but it is a time to celebrate and to take some money off the table. The honeymoon for the new government is in place. The outlook for the Federal Reserve to do something on interest rates will keep pressure on the currency side and I have to say that personally, I am slightly disappointed with the new government’s inability to really move the reform agenda forward.

A lot of FDI flow came into India based on the fact and the expectation that Modi would deliver. I do not think he has really done that yet. It is of course also very difficult to move from sort of a rhetoric pro-reform stance to actually implementing it.

So I fully understand difficulties in doing this but the honeymoon is over for India and to some extent, I also think the Indian investors should take some money off the table, if for no other reason, just to be a little bit conservative and stay with rule number one of investing which is preservation of capital.