NEW DELHI: India is strongest of the BRIC markets this year despite issues like weak currency, falling GDP growth and poor monsoon, Goldman Sachs chairman Jim O'Neill said."It is fascinating to me that the Indian market trades well. It is strongest of the BRIC markets this year," he told ET Now."So either the markets are being really stupid or they smell something," he added.O'Neill said that reform hopes are high as P Chidambaram has once again taken charge as the finance minister, adding that the drop in oil prices will benefit the Indian economy."If we do not get some new policy initiatives soon, then perhaps the market will lose its confidence," he said.In terms of valuations among BRIC nations, he said that China would be the most attractive, while India would be the least."That is partly because of simple things like cyclically adjusted PE ratios and also forward PE ratios. That being said...if we do indeed get some reforms, perhaps India will further rally ahead of the move of the other markets," he added."Everything is not driven by valuations but from a fundamental valuation perspective, I will have China at No. 1, right now, Brazil No. 2, Russia No. 3 and India No. 4. All 4 of them look quite interesting to me though," he added.Speaking on the global perspective, he said he has been in the more optimistic camp about the US for most of the past 18 months, but recent economic data has not been encouraging."I am just really recognising reality and the loss of momentum. I cannot fully explain why that momentum has declined so much, which makes me suspicious that it could easily bounce back," he said.He added that the low German and US bond prices were a sign of how concerned investors have become all over the world about the macroeconomic challenges.He added that the global energy scenario is starting to change due to the shale gas story and China’s focus on alternatives and energy conservation."So I am not quite sure what the bullish argument for oil is anymore. I was happy to be part of it from most of the past decade but the past 12 to 18 months, the picture is changing very quickly and oil above $80 a barrel strikes me as being pretty expensive," he said.