Investors should focus on valuation metrics i.e. companies with reasonable price to book value backed by improving operating metrics are likely to outperform.
Improvement in the macro environment does have a positive impact on equities. Easing of crude oil prices, stability in rupee and its possible fallout on monetary policy has aided sentiments.
Sakshi Batra does a 3 point analysis on how tyre manufacturers like CEAT, Apollo Tyres and MRF performed in Q2.