Deutsche said investors should focus on domestic cyclical shares, as well as sectors that could benefit from BJP's efforts to revive the economy, including banks, oil and gas, industrials and infrastructure.
The investment bank called BJP's victory a "historic verdict" that would justify "a re-rating of the Indian equity markets" and said shares were "at the cusp of a structural bull market."
The Deutsche target would imply a 10.3 percent upside from the record high of 25,375.63 points hit on Friday.
(Reporting by Rafael Nam)
After markets rally, BJP to face key investor tests
After hitting record highs, markets lose steam
Cheapest major economy? It's India, of course!
Modi wins Vadodara LS seat by over 5.70 lakh votes
PHOTOS: NaMo bhakts party on the streets