Stronger economic growth, accelerating government spending and a bottoming out of inflation are just some reasons why many analysts are bullish on India — and asset management firm AllianceBernstein is no exception. In an Oct. 9 note, analysts led by Venugopal Garre pointed out that Indian equity markets rebounded strongly in March after lagging from the end of 2021. While markets have started retracting since September, the benchmark Nifty 50 index remains elevated near 19,500 levels. “India has been the best performing Emerging Market in terms of USD returns at 8%, surpassing Brazil at 6%,” they wrote. The analysts expect the South Asian country to have “one of the highest returns among key markets throughout the world for the next several years.” In terms of asset allocation, AllianceBernstein is overweight on financials, while allocating a small portion of this weight to utilities. It is also overweight on consumer tech and building materials, and is equal weight on autos and discretionary spending, while being underweight on staples and metals. The asset manager says its portfolio has outperformed the benchmark Nifty index by 14.7% since its inception in 2019. Stock picks Food delivery player Zomato is among AllianceBernstein’s top stock picks in the country given recent recovery in the industry. The analysts are overweight on the stock at 120 Indian rupees ($1.44), representing an upside of around 10% from its Oct. 11 close Financial services provider HDFC Bank also made the asset manager’s list thanks to its “phenomenal” deposit-gathering ability. The analysts are overweight on the stock, giving it around 36% upside. Delhivery is another favorite stock, with a price target of 460 Indian rupees, giving it around 5% upside. The logistics company is seen as a “laggard” among consumer tech companies in India and has “tactical upside” amid expectations for stronger profitability and growth, the analysts said. New on the radar AllianceBernstein’s portfolio has also undergone a refresh to include two new stocks: NPTC and Paytm . Electricity generation company NTPC made the list for its opportunities in thermal, renewables and green hydrogen, the analysts wrote. The asset manager is overweight on the stock at 274 Indian rupees representing an upside of almost 15% from its Oct. 11 close. AllianceBernstein is also positive on digital lending player Paytm . “While it’s too early to declare winners in the digital lending space especially with the expected entry of Jio Financial Services, PayTM does appear to be on the right side of disruption with its dominant payments platform and a head start in digital credit products,” the analysts wrote. The asset manager is overweight on Paytm and gives it upside potential of 13.2%. — CNBC’s Michael Bloom contributed to this report.