Broking firm, ICICIdirect has come out with report on sector outlook for 2012. We have collated key highlights for each sector from their report. The same is as follows:

Oil & Gas - Neutral
The oil & gas sector reported a tepid performance in CY11 on lack of regulatory reforms, uncertainty about government policies and lower domestic gas production. In CY12, we believe elevated Brent crude oil prices on geo political tensions and remote possibility of petroleum products` pricing deregulations would continue to remain a drag on the OMCs for H1CY12. We prefer to play the oil & gas sector through the PSU upstream companies on account of lower valuations (BSE oil and gas index has been trading near historical lows of 10-12x PE multiple) and gas utility companies as defensive bets within the sector.

(Sourced from IRIS.com)