although fiis are very bullish on india their stake in india is getting sold because of the redemption pressure they are facing with respect to their investments in the emerging market portfolio says kailash kulkarni chief executive officer lt mutual fund in an interview with etcom markets are experiencing high levels of uncertainty and volatility how is india placed considering its position in the emerging market portfolio and fii inflows volatility is going to remain for some time in the markets on the equity side and that has nothing to do with india actually there is a lot of positivity around india the issue has more to do with whats happening in the emerging markets ems the emerging market basket includes not just india and china but also brazil russia and a lot of other countries they are not doing well and are not expected to do so for some time so the investors who have invested in the emerging market basket are actually pulling out now indias weight in the emerging market basket is about 7 per cent and majority of the funds were either neutral or overweight in there now if you received rs 100 and rs 20 is pulled out by default india has to also get sold that is the real pressure which is reflecting in fii selling the indiadedicated funds portion is actually too small compared to the emerging market portion hence although fiis are very bullish about india and whats happening in india in the current situation the stress is more on the redemptions they are facing in their home countries on the emerging market front so the market is under pressure basically because of the outflow from the fii side thats a huge pressure on the system the money in the emerging market basket is far higher than that in the indiadedicated basket so if the leakage is there in the much bigger pie even if you have an addition in the smaller pie it doesnt compensate for the loss how do you view the current market situation when your sensex peak was around say 2600027000 you were neither in the cheap nor in the costly categories you were thereabouts with the market having corrected clearly there is a buy today from a pure valuation perspective so very simply put its pure valuation today and there is a buy what can go wrong if you want to look at that we have three bad crop seasons in a row which has impacted our rural economy if this monsoon again turns out not so good surely the rural economy is going to suffer what are some key triggers that could see the markets exploit these valuation plays there are certain key triggers that we are all expecting one there is no doubt today that the government is still on the path of growth nobody has any doubt about that the government hasnt deviated from what they said two years earlier they are still set