The Indian stock market has been one of the biggest laggards this year missing out on a global rally in equities, but some strategists are betting on a change in fortunes for the country's stocks, which have fallen 6 percent since the end of January.
Stocks have come under pressure on worries over Asia's third largest economy's growth trajectory and its government's precarious financial position. But Adrian Mowat, chief Asian and emerging market strategist at JPMorgan who is overweight Indian equities, told CNBC on Wednesday that he is "very bullish" on the market.
The central bank's easing bias and the government efforts to reign in the fiscal deficit are two of his reasons.
The Reserve Bank of India, which lowered interest rates for the second time this year on Tuesday, is expected to ease monetary policy further this year, with some economists forecasting up to 75 basis points of additional cuts. Lower financing costs help boost corporate profitability.
(Read More: India's Central Bank Cuts Key Interest Rate)
Worries around the country's fiscal deficit are subsiding as the government acts to reduce its expenditure through reducing subsidies on fuel, for example, Mowat said. The country's fiscal deficit is forecast to come in at 5.2 percent of gross domestic product (GDP) for the fiscal year ending March 31 2013, below the target of 5.3 percent and fall to 4.8 percent next year.
(Read More: Has India's Economy Turned a Corner?)
While India's growth picture looks grim at the moment, Sanjiv Duggal, investment director, equities at HSBC Global Asset Management believes it has bottomed out and will pick up from here.