Goldman Sachs, a global rating agency, upgraded its view on Indian stocks as the pre-election rally is imminent given hopes of the second term of the ruling BJP party.
India fast gears to participate in a massive voting exercise that begins next month , and the counting is to be held on May 23.
Other positives are abating foreign fund flows that have hit a 15-month high at $2.42 billion in February, which is a big deviation in comparison to net outflows of $4.4 billion in 2018. The pace of fresh fund inflows have been triggered due to deeper economic reforms as well as monetary easing.
Analyst in a note dated Monday further said the risk/reward appears favourable for India once again.
In September last year, GS downgraded India to 'market wright' on near-term risks concerning earnings and macro factors, election related uncertainties and stretched valuations.