Rupee could rise to 52 per dollar by end of 2013 and is Credit Agricole's top pick among the emerging markets, it says in a note.
The government winning the vote on foreign direct investment in multi-brand retail will continue to help the rupee despite questions on whether the reform will be approved by the upper house and concerns about its implementation.
"The government's victory is a good sign of its ability to push through other reforms," the bank says.