The markets seem to be betting big on a Narendra Modi-led BJP government at the Centre.“Equity investors tend to view the BJP as business-friendly, and BJP’s prime ministerial candidate Narendra Modi (current chief minister of Gujarat) as an agent of change,” says Goldman Sachs says in its latest report titled 'Modi-fying our view ...'India is facing macro challenges in terms of fiscal imbalances, high inflation and tight monetary policy; and a change at the Centre is being viewed by analysts as a catalyst to attracting investment in the country, which they feel could happen if the BJP comes to power.“BJP and Mr Modi, in particular, have been focussed on infrastructure and capital spending in the past and a BJP-led government may be beneficial for the investment demand pick-up, in our view,” the report adds.Goldman is the latest to jump on the bandwagon. The same has been claimed by several individual analysts and brokerages over the past one month.In fact, some like Manish Sonthalia, VP & Fund Manager , Motilal Oswal Asset Management, feel that a BJP win in the coming assembly elections could see the Nifty running may be up to 7,000-odd levels.In case, the BJP fails to win less than three states in these elections, he sees Nifty back to 5,000-5,500 levels.The current rally in the Sensex , which saw the index hitting record highs in the past week, is being attributed to two factors - the decision in the US to continue with the monetary easing programme and the Modi factor.Arvind Sanger, Managing Partner, Geoshpere Capital Management: Frankly, a Modi-led government will be positive for the market.Sanjeev Prasad, Senior Executive Director & Co-Head, Kotak Institutional Equities: If there is something in favour of the BJP in state assembly elections, the market will take that positively.”Based on our discussions with investors, markets are positively inclined towards Mr Narendra Modi-led BJP and less so towards the Congress, despite some course correction in policies recently by the latter.The Indian stock market's greatest hope is the emergence of Gujarat Chief Minister Narendra Modi as the BJP's prime ministerial candidate.Today, Goldman Sachs raised its investment stance on India to 'marketweight'. Among the reasons cited, Modi factor was on the top of its list.1. External capital account pressures have moderated, at least for now.2. There are early signs of cyclical pick up and structural improvement.3. The earnings outlook is stabilizing and we have raised our CY2014 EPS growth forecast from 8% to 11%.4. Midrange valuations are not a constraint if fundamentals continue to stabilize; midcaps trade at a 30% discount to the broad market.5. Retail redemption pressure could moderate, which could improve the equity demand/supply balance.