India's equity markets are currently navigating a landscape marked by optimism in select sectors and caution due to inflationary pressures and elevated crude oil prices. Neeraj Dewan, a market expert, observes that while frontline indices remain range-bound, there is a resurgence of selective buying in midcap and smallcap stocks, particularly following quarterly earnings announcements. Despite a brief profit booking phase in May, the market's resilience is encouraging. Dewan highlights the challenges faced by quick-service restaurant (QSR) companies like Jubilant FoodWorks, which reported disappointing earnings amid stiff competition and rising input costs. He notes that while margins remain stable, sustained inflation threatens profitability. In the auto ancillary sector, there is emerging value buying, especially in tyre companies, as investors await a correction in crude prices. The IT sector, however, is characterized by tactical buying rather than strong conviction, as weak earnings guidance dampens enthusiasm. Looking ahead, Dewan maintains a positive long-term outlook on the electric vehicle ecosystem, particularly for companies investing in energy storage and battery infrastructure. As the earnings season progresses, investors will focus on management commentary regarding inflation and demand recovery across sectors.