Global investment banking and securities firm Goldman Sachs in a report said India's economic growth, backed by favourable external sector demand outlook and
a pick-up in domestic reforms, is likely to accelerate to 6.5 per cent in 2013.
It raised Indian stocks to "overweight" from "market-weight", citing growth recovery and moderation in inflation in the days to come and pegged December 2013 Nifty target at 6,600 points.
"Reform initiatives and changes in government leadership this fall have created a sense of
optimism among the domestic investor base for the first time in over a year, and the risk of policy missteps in 2013 has been lowered," the bank said in a report.
The Goldman Sachs report added that MSCI India's valuation was well below the 5-year average of 14.9 times, affording an attractive entry point into one of the stronger structural growth markets in the region.
The
BSE Sensex jumped 1.75 per cent, or 328.83 points, to 19,170.91 on Thursday, bolstered by Parliament logjam ending over the government's decision to allow foreign direct investment (FDI) in retail. The 50-share National Stock Exchange Nifty closed at 5,825 - 97.55 points, or 1.70 per cent, higher.
With inputs from agencies 
PHOTO: Associated Press 
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