Gradient refractive index metamaterials are of interest for various applications of transformation optics. Wave propagation through gradient index metamaterials using an exact analytical approach is investigated. Composite materials containing constituents with negative real and positive real indexes of refraction are considered. An exact analytical solution for the field distribution is obtained for the sinusoidal spatial variation of complex effective permittivity and permeability along a fixed direction, under the assumption that the wave impedance remains spatially uniform across the structure. Loss factors in the constituent materials can be different from each other corresponding to the realistic situations. Temporal dispersion can be arbitrary subject to the physical limitations imposed by the Kramers-Kronig relations. A numerical model based on the Z-transform is developed to verify the analytical results. The approach can be applied to arbitrary periodic refractive index profiles using the Fourier series method.