Shares in Larsen & Toubro gained more than 2% after Goldman Sachs upgraded the stock to "buy" from "neutral".
Goldman cited cheaper valuations after L&T's recent under-performance against the broader index and the prospect of stable revenue growth over the medium term.
The investment bank also noted the government is expected to fast track an estimated $30 billion worth of infrastructure projects in fiscal 2013/14, while also pointing to other supportive factors such as an expected lower cost of financing.