Watching the meteoric rise of India's stock markets so far this year, one can be forgiven for forgetting that just a year ago, the asset class was a poster child of the emerging market bashing.
Both benchmark indices, the Sensex and the Nifty, swooned last year on fears a tapering of asset purchases by the Federal Reserve will trigger an outflow of funds from the market, falling to year-lows in September.
But this week, India's stock markets came back from Independence Day celebrations roaring to new life-time highs, as local and foreign investors continued to pile in their money, on hopes the economy will stage a sustainable turnaround.
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The Sensex and Nifty have soared some 25 percent so far this year, and analysts are calling for more gains to come.
Saurabh Mukherjea, CEO of institutional equities at Ambit Capital, expects stocks to run up another 15-20 percent by the end of India's fiscal year in March next year.
"That has been our call since May this year, and we standing by that view. India's economy is turning, it's coming out of a downturn, fiscal and monetary policies are on the right path, and that's generating confidence in the markets," he said.
Sahil Kapoor, chief technical analyst at Edelweiss expects the Nifty to make a dash towards 8,000 points in the near term; it closed Tuesday at a record high of 7897.50.
"Once that takes hold I see the Nifty rising towards 8,400 points by the end of this year. Generally whenever the index rises by more than 20 per cent in a calendar year we see the index rising for about 8 to 9 months on an average," Kapoor said.
India stocks started the year well, but the buying momentum really picked up in May when business-friendly Prime Minister Narendra Modi won the national elections by a landslide, on hopes the new government can stem a growth slowdown that's plagued the economy in recent years.