Don‘t see money moving out of India into other EMs: HSBC

The Indian market has been an underperformer compared to other emerging markets especially China. India is up only 3 percent and China is up 18 percent and the big question is if money is moving out of India into China. Herald Van Der Linde, HSBC is still overweight on India and do not think investors are selling India to buy China although it has become more attractive on back of some key policy changes by The People's Bank of China (PBOC).He believes there are no specific risks in India, the only risk being other markets could become more attractive. However, he does not see money being rotated out of India into other emerging markets either. In an interview to CNBC-TV18’s Latha Venkatesh and Sonia Shenoy, he says India needs a bit more momentum on the reform front. He expects interest rates in India to come down further.Some of the changes undertaken by PBOC are that it lowered down-payment on second  homes from 60 to 40  percent and finance ministry waived of sales tax for homes held for two years and more. The PBOC governor also said that policy makers have more room to act with rates.