If risk aversion goes up there could be profit-taking in the equity markets and that is a major risk.

There could be an increase in the risk premium if global interest rates rise. But foreign investors tend to invest their money in India because of a long-term view on the economy and this is unlikely to change suddenly.

Emerging markets have become expensive and we have reduced our exposure. One reason is that Japanese interest rates will eventually go. This will have implications because carry trades are likely to be unwound.

The near-term momentum is clearly favorable to the dollar. Two further rate hikes are a pretty sure thing.

In Asia, if the US is doing well, exporters will do well.

Once you cross such a psychological mark, you will get pulled back. That is natural.