Indian Stock Markets have started the year 2012 on a positive note and investors have already noticed between 10-20% increase in their wealth as most stocks have offered good returns in January and February.
Driven by higher domestic demand and higher consumption in the local market, Indian markets are among the most optimistic compared to other emerging economies. The consumer confidence index has increased to 122 in Nielsen report.
After six weeks on gains, technical experts are expecting the stock markets to see some pressure. Going stock specific, there are many stocks, which have gone much higher in terms of valuations and are trading above the comfort zone.
Angel Broking expects profit booking in some counters. Kishore Ostwal of CNI Research expects correction in the market. At higher levels, investors turn cautious and lot will depend on global market conditions as well. The investors, who are sitting on decent gains, might look forward to book profits and exit at higher levels.