All the factors that led to the market rally in 2020 will continue to exist in 2021, said Gautam Trivedi, Co-Founder & Managing Partner of Nepean Capital.
"I do not see a significant deviation from that. The other theme I must mention is the return of midcaps," said Trivedi in an interview with CNBC-TV18.
On the IT front, Trivedi said, “I do not see IT spending being curtailed and the valuations are indeed high and if there is a correction, IT definitely a sector I would buy into.”
According to him, resurgence of auto sector bodes well for auto ancillary sector. “Auto ancillaries, which haven’t done that great in 2020 - I would focus on those. I would look at building materials and within the midcap space, we look at ceramics industry. So the small and midcap companies will now start seeing the fruits in 2021,” he said.
Trivedi, however, said capital goods and real estate is more of a 2022 story.
Speaking about the upcoming budget, he said rapid divestment and privatisation should be the key focus in Budget 2021.
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