Gautam Trivedi explains why he has a bias for private sector banks and is positive on defence, real estate

Gautam Trivedi, the co-founder and managing partner at Nepean Capital, thinks the banking space still remains great. "They're not expensive. We continue to like that space. And I am, of course have a bias for private sector banks," he said while speaking to CNBC-TV18 on Wednesday.

Trivedi also said that defence would be an area to focus on as a lot of orders are going to the defense companies. "Defence companies are finally getting their space in the sun. A lot of those orders are going to public sector defense companies. But I think a more of a private companies will also start to benefit," he noted.

"This is a promise, which I remember talking to even L&T, about eight, nine years ago, they had built up the whole infrastructure and were waiting for defense orders, which never really came. But finally, I think that's starting to happen," Trivedi said.

About the real estate space, he thinks there is there is a huge resurgence, as the sector has finally made a comeback after eight years. "And a company like Polycap and anybody within the building material space, is going to use the benefit, whether it's the ceramic companies, whether it's companies like Polycap, or even the Bajaj Electricals," he said.

Speaking on midcaps, Trivedi noted that the midcap space, unfortunately, has run up way ahead of its fundamentals and some of these valuations are very high. He said that he would wait for a correction and hopes that there is one in the market overall. "If that were to happen, I think I will focus on names like Polycab or some of the ceramic companies," he added.

On telecom, he said: "We haven't bought Bharti Airtel. It's the only listed play as of now. Jio is not listed and Vodafone of course it is a crapshoot if that's going to survive. And MTNL, I guess the government has thrown in the towel. So Bharti is the only one that's really left standing from a listed play in the way to play the mobile telecom play. But having said that, I think the EMS companies are what we like, as I just mentioned, there's going to be huge potential there."