“We are quite bullish on financials — not just banks but also NBFCs and gold-loan companies — where we’re seeing major restructuring, leadership changes, and foreign capital inflows,” Trivedi told ET Now.
He noted that the Middle East and global private equity funds are showing strong interest in Indian financial assets, signaling a long-term vote of confidence in the country’s financial ecosystem.
Foreign investors favour IPOs over secondary markets
Trivedi highlighted an interesting trend — foreign institutional investors (FIIs), while selling in the secondary market, are actively participating in India’s booming IPO market.
“The irony is FIIs are exiting listed names but aggressively buying into primary issues. The IPO pipeline remains massive, and they’re betting on new listings over seemingly overpriced existing stocks,” he said.
With India now ranked as the fourth-largest IPO market globally, Trivedi expects sustained investor appetite in consumer tech and digital-first companies, provided profitability improves over the next few quarters.
AI, data centres, and power: India’s next big story
Nepean Capital’s second-largest portfolio exposure is in the power sector, driven by the exponential rise in energy demand from AI adoption and data localisation mandates.“Every AI search consumes 10 times more power than a Google search. With over 800 million smartphones riding on 4G and 5G, India’s data centre capacity will have to expand rapidly,” Trivedi noted.
“This is a phenomenal opportunity for the power and data infrastructure sectors as India mandates local storage of user data.”He added that IT majors like TCS, which are venturing into cloud and data infrastructure, could transform their business models if they integrate value-added services into these verticals.
China outperformance doesn’t dent India’s long-term story
On global flows, Trivedi pointed out that while China, Korea, and Taiwan have outperformed India in dollar terms this year, the long-term narrative still favours India due to its structural earnings recovery and policy tailwinds.
“There’s renewed global curiosity about India. Investors are asking when, not if, to invest,” he said, adding that a rebound in corporate earnings and continued government-led capex could re-ignite FII inflows in 2025.
The bottom line
Trivedi summed up India’s investment opportunity as a “three-pronged” story — financial inclusion, digital acceleration, and energy transformation.These themes, he believes, will shape India’s next decade of wealth creation.