Goldman Sachs upgrades India to 'overweight' amid pre-election rally

Goldman Sachs (GS) upgraded its view on India to “overweight” as the country catches up with pre-election rally amid expectations of another majority win for the ruling Bhartiya Janata Party.

Investors have started to place their bets for a stable government, especially after India's tensions with its nuclear-armed neighbour have slightly allayed.

India prepares to vote in a massive exercise that begins next month, while the counting is scheduled to take place on May 23.

Foreign inflows into Indian equities soared to their highest in 15 months at $2.42 billion in February, a big swing from 2018's net outflows of $4.4 billion.

Hopes for deeper economic reforms and more monetary policy easing have helped bring back foreign investors to India.