"Among emerging markets, India is gaining popularity as an attractive investment destination and any stable government (post-elections) will increase the confidence of overseas investors.
"As a result of this, we will get into a 2-3 years of reasonably bullish kind of cycle," Birla Sun Life Mutual Fund Chief Executive Officer A Balasubramanian said here.
Terming the asset management company's outlook on equities as bullish, he said the fund house is betting on cyclical stocks in its bid to garner higher returns.
"We are betting to some extent on cyclicals through a combination of banking and capital goods sectors."
Cyclical stocks are those securities which are affected by the ups and down in the overall economy and usually deal with discretionary items.
Asked whether the private fund house is equally bullish on the public sector banking space, Balasubramanian said it expects all banks to participate in the rally if economy revives.
He said selective stocks in automobile space have given good returns to the fund house.
Talking on the possible monetary easing cycle by the central bank, Balasubramanian said if a stable government comes to power and focus on growth revival, then monetary policy will be accommodative with likely easing in the second half of next fiscal.