Goldman Sachs Group Inc, the leading global investment banking, securities and investment management firm, upgraded its view on India to its honored term OVERWEIGHT in view of India’s catches up with pre-election rally amid expectations of another majority win for the ruling BJP.
India’s sharp underperformance in the first two months of this year, indicates an uptick in demand leading to significant earnings season for the December quarter and pick-up in foreign flows led the brokerage to upgrade their view.
India vehemently gears to take part in a massive voting exercise that commence next month, and the counting is to be held on May 23.
Other positives factors are foreign inflows into Indian stock markets rose to their highest in 15months at USD2.42 billion in February, a big swing from 2018’s net outflows of USD4.4 billion. The pace of new fund inflows has been factored due to deeper economic reforms and monetary easing.
Market analyst in a release on Monday further said the risk/reward appears favorable for India once again.
In view of this, it foresees that during election period the markets will be at its excellence.