Goldman Sachs in its latest report has shown a positive outlook for India's stock market. Not only has India been the best performer among the Asian markets this year, the American investment bank said that the country has "plenty to play."

Despite the recent rise in BSE's Sensex, analysts at Goldman Sachs say that there is more room for growth in the stock markets. "This rally in the Indian indices has been led by only selected stocks-HDFC Bank Ltd., Reliance Industries Ltd., and Infosys Ltd.-which means that there is "still plenty to play" for in India. From consumption to construction, India remains one of the only markets with cyclical growth still on the upcycle," it said in a note on Thursday.

It further said that the macro data indicators are also pointing towards a healthy outlook for the country. Indian markets are expected to gain from the RBI's intervention in the foreign exchange market, increased capital expenditure, a bright earnings growth, limited exposure to trade wars and the festive season later this year.

In the note, Goldman Sachs has shown a positive outlook for some large-cap stocks with strong dynamics and some rural demand based companies that could gain as India prepares for general elections in 2019. They are:

1. Reliance Industries Limited
2. HDFC Bank
3. HDFC
4. Infosys
5. TVS Motor Company Ltd
6. Colgate India
7. Maruti Suzuki