Too early to write off the comeback of bulls: Experts

The stock indices, which traded sombre for most part of morning and early afternoon trade, witnessed a sudden turnaround in sentiment after European indices opened on a strong note. The 30-share BSE Sensex strengthened 146.83 points, or 0.79%, to close at 18,653.87 and the 50-share NSE Nifty rose 46.50 points, or 0.84%, to settle at 5,613.55.

Jai Bala, chief market technician of Cashthechaos.com is of the view that investor sentiment may remain positive for some more time in the short run but the overall picture still remains uncertain over the long haul. (Quick snapshot of today's trade)
Rising input costs and interest rates have taken a toll on the profit growth of India Inc for the quarter ended June, creating a downward spiral among investor sentiments. So, any disappointment in margins from large-cap or midcap stocks is expected to creep in market mood? David Pezarkar, head- equity, Daiwa Mutual Funds believes this earnings season is going to be tricky.
"While most of the letdown would come in from raw material price movements, which is not a structural issue, it can be tackled over the course of next couple of quarters." Going forward, Pezarkar solicits that one should not be too concerned of the hits seen today.
However, Mehraboon Irani, Principal and Head- Pvt Client Group Business at Nirmal Bang Securities argues that the market has already discounted a large part of the results which are going to be announced or already declared. "If there's any bias in the market, it