Goldman Sachs, amongst the top investment banks in the world, upgraded India’s rating to marketweight from underweight on the perception that BJP-led NDA “could prevail” in the 2014 elections. This was highlighted in its 18-page report, ‘Modi-fying our View: Raise India to Marketweight’.

It said that equity investors tend to view BJP as business-friendly, and its PM candidate Narendra Modi as an agent of change. Stock markets in India have been hovering around 21k mark despite poor fundamentals (currency depreciation, bloating subsidies, pressure of rating downgrade etc.) and some view that this is on account of opinion polls showing NDA victory. Gujarat has done really well in terms of industrialization; some of the larger business groups in India (Ambanis, Ruias, Adanis etc.) have their factories in Gujarat. The state was also able to enable Tata Motors shift its NaNo plant from West Bengal after significant land acquisition protests there…