New Delhi, May 26 -- India will be one of the key beneficiaries of foreign investor flows, with an anticipated slowdown in the US amid escalating trade tensions, according to Yogesh Patil, chief investment officer (CIO), equity at LIC Mutual Fund Asset Management Ltd.

A sustained low inflation and supply of domestic risk capital are likely to serve as tailwinds for India's equity markets even as earnings growth is expected to get a boost from a favourable base effect in the latter part of the fiscal, said Patil. Investors are better off following a stock-specific approach, he said. Edited excerpts:

Most of these known factors are already discounted in the market prices. While investing in equities, investors are always exposed to a few ...