Uncertainty in US policy driving FII caution in Indian markets: Rajeev Agrawal
«The challenge is that you do not get good prices. So, you have to balance the uncertainty versus the prices,» says Rajeev Agrawal, Doordarshi India Fund.
Everybody is calling FIIs villain in India. Everybody is saying the markets are falling because you guys are selling. Is it true?
Rajeev Agrawal: We are actually buyers. We like to buy things when they are on discount, when they are on sale, and right now we are seeing a lot of opportunities. So, we are nibblers, if you would, and that is what we have been doing.
In general, the FII community has been selling. Why is that?
Rajeev Agrawal: One obvious reason is there is a lot of uncertainty. We can clearly see with the policy measures that are coming in and there are a lot of policy measures every day and so clearly there is this feeling that maybe this is the time to step back and get back into the markets when there is a little bit more clarity. Now, of course, the challenge is that you do not get good prices. So, you have to balance the uncertainty versus the prices.
What is leading to uncertainty? I mean, a lot of events are behind us already, are not they?
Rajeev Agrawal: I am referring more to the US policy measures. So, we just saw, for example, the import tariff on steel and aluminium, as you saw by Trump. And every day we hear a new policy measure that is coming in. Earlier it was Canada, Mexico. Now, one thing which is interesting is some of these policy measures may not impact Indian companies as directly and yet what is interesting is that because
