FPIs pick India over other emerging markets, pump in $4 bn in July

Overseas investors have pumped a staggering $4 billion into the Indian capital market this month, primarily due to "better prospects" of economic growth as compared to other emerging markets.

The latest inflow follows net infusion of Rs 1.6 lakh crore in the previous five months (February-June). In January, they had pulled out Rs 3,496 crore.

"FPI inflow could be attributed to relative opportunity or better prospects of growth in the Indian economy as compared to other emerging markets as well as developed countries," Vidya Bala, Head of MF Research at Fundsindia.com, said.

Better-than-expected earnings by most corporates so far and a steady progress