India markets have made a stunning recovery from last year’s taper tantrum, with the Nifty index at record highs, and some analysts are calling the run up just the beginning.
“India has huge growth potential and it is a structural story. If you are not in it, buy it,” said Bhaskar Laxminarayan, chief investment officer at Swiss private bank Pictet, which has made the market a core holding in its Asian portfolios.
Indian assets have already seen a strong rally. Both the Nifty and Sensex indexes are tapping record highs after rising around 37 percent each so far this year. Last year during the taper tantrum, the rupee tumbled to a record low, with the U.S. dollar fetching nearly 70 rupees. This year, the currency has remained in a tighter range, with the dollar fetching around 58-63 rupees.
Laxminarayan believes India is on a structural upswing, offering a five to 10 year opportunity.