Foreign fund managers, who have pumped nearly $2 billion into the cash segment of the equity market in the last 10 days, have turned aggressive after the landslide victory of Narendra Modi. As a result, FIIs are now all set to deploy more funds in the Indian market.

“FIIs are looking at a stable investment environment, stable and growth-oriented policies, structural reforms towards improvement in productivity and fiscal prudence,” said Vikas Khemani, president & co-head, wholesale capital markets, Edelweiss Financial.

The bullishness among FII fund managers is so strong that they believe net FII flow, which is currently at $6.8 billion this year, may surpass last year’s figure of $20.1 billion after a rather weak start.

On the sectoral front, FIIs are bullish on banking and capital goods sector, while they believe any attempt to revive the infrastructure sector would be positive for the revival of the investment cycle in the country. Over the past couple of years, the infrastructure sector has seen a slowdown with a large number of projects either stalled or abandoned. FIIs are also looking at the new government to contain the fiscal deficit and also bring the inflation under control, dealers and fund managers said.