Dean Kim, the Head of Global Research Product at William O'Neil + Co., attributed the recent pullback in the Indian market to the vulnerabilities in the US market but noted that as the US shows signs of recovery, there's an anticipated upswing in investor interest for emerging markets, especially India.

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"We anticipate India's market to regain its short-term moving averages and ascend once again," Kim told CNBC-TV18 in an exclusive chat.

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Amidst this backdrop, Kim highlighted several Indian financial institutions that are poised for growth. He expressed confidence in IndusInd Bank, L&T Finance, and Equitas Small Finance Bank, and showed a particular interest in Punjab National Bank (PNB) among the public sector banks.

In contrast to India's promising outlook, Kim remarked on China's economic challenges, suggesting that the ongoing downtrend in China could shift investor focus more favourably towards India.

William O'Neil + Co's insights reflect a broader sentiment that, despite recent market fluctuations, India's economic fundamentals remain strong and may soon reflect in its stock market performance.

Earlier this week, Reserve Bank of India Governor Shaktikanta Das said that India's second-quarter (Q2) GDP will surprise by coming in higher than estimates. Shortly after this statement, the government released tax data for September, revealing a significant increase in gross tax revenues for July, August, and September — a growth of 27.8% compared to just 3.3% last quarter.

A CNBC-TV18 snap poll found that 60% of economists recently revised their Q2 GDP forecasts to roughly 6.7-6.8%. They cited strong tax numbers, favourable corporate results, and the surprising resilience of the US economy, which grew by 4.9% in the July-September quarter.

If Q2 GDP exceeds expectations, it raises questions about whether the full-year GDP forecast will also need to be revised upward. However, concerns remain about the potential impact of higher Fed interest rates on the US and global economies.

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(Edited by : Shweta Mungre)