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 FIIs are selling, the Indian companies also take the beating. I would be surprised if this particular policy measure, the recent one, has much of an impact on the Indian companies.The challenge could be if those imports, instead of going to the US, start coming to India and that could be a big risk. But these small things which the market gets nervous about and there is plenty to be nervous about knowing how Trump is looking at various policy measures.Since you say so that you are finding opportunities in this market, help us with some sectors that where you are eyeing at. We understand that the last time we chatted, it was financials that you were looking. But given the sell-off and the sale in the market, any other sector that you are spotting?Rajeev Agrawal:So, the other one is more in the real estate. Real estate stocks have come down significantly in the last few months and still there is significant inherent demand that we see over the next few years, so that is another sector that we are finding some good value.And we are continuously looking. I mean, one of the things which I did not mention to Nikunj earlier was that Indian stocks have been expensive and so when stocks are expensive, you just need a reason to start selling. And still a lot of sectors, even after this beating that we have seen, they are still quite expensive, so you have to pick your spots and finance and real estate is so far where we are looking at.What could be the trigg