Goldman Sachs, the investment bank, has upgraded India from the status of overweight to market-weight today while quoting that the nation was witnessing growth recovery and moderation of inflation in the near future.

The bank has nailed the target for the nation by December 2013 in Nifty at 6000 points. On Tuesday Nifty wrapped up at 5,727.45 points, an improvement of 1.62% over the day before.

In a report, Goldman Sachs mentioned that the government leadership changes and the reform initiatives were responsible for the hope for the first time in the year. "Reform initiatives and changes in government leadership this fall have created a sense of optimism among the domestic investor base for the first time in over a year, and the risk of policy missteps in 2013 has been lowered," it said.

It went on to add that a lower valuation MSCI India was much lower than the 14.9 times five year average could be a promising entry point to a better structural growth in the markets of the region.

(AW- Anil)a