"It's surprising the way Indian markets have performed given how the yields, currency and emerging markets bonds are trading at but it could a rub off from good earnings posted by some of the largecap names," said Pramod Gubbi, Head of Equities, Ambit Capital.

However, once the dust settle downs on the earnings, then the macros will again come to fore, he said in an interview to CNBC-TV18.

According to him, from a bottom-up perspective, one could still be a buyer and also the micros are getting better in terms of earnings growth etc.

For the market as a whole, macros will overweigh although there is no doubt that growth has picked up at the economy level, he said, adding that besides growth the other parameters like current account deficit, bond yields, inflation are turning adverse.

“The benefit of pickup in growth towards corporate profitability and earnings growth should be looked at with positive view and for bottom-up investor, there could be opportunities where there is enough earnings growth visibility to justify the valuations,” said Gubbi.

Talking about the information technology space, he said they have been positive on the sector although valuations are no longer as attractive.

However, a lot of things are stacking up well for sector, especially companies that have made ahead of the curve investments in digital, he said.

Moreover, the sector also has a tailwind in terms of currency and pick up in investments in the US.

With regards to commodities, he said given that global growth is on track, commodities and metal stocks should do well and the house is positive on that space.

He said the house is bullish on the consumption space, it will be in focus this year, especially this being an election year.

Rural consumption should see disproportionate pickup in growth, which will flow into earnings.

Within the financials, he said, given a time when interest rates are rising one should focus on financials having strong liability franchise. So, private sector banks with strong Current Account, Savings Account (CASA) franchises remain preferred bet. However, investors should stay away from public sector banks.

First Published:May 9, 2018 11:14 AM IST