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:

It said “We remain cautious on the sector and prefer owning/buying large cap stocks on dips from a three year perspective as the sector is expected to languish in the medium term.

In terms of performance, we expect CY12 to be disappointing as H1CY12 would see tepid order inflows even though revenue growth would be reasonable, whereas H2CY12 would witness a decline in growth rates as dull order inflows in CY11 would reflect on the financial performance. Also, order inflows in H2CY12 would be a function of how fast interest rates decline, pace of implementation of reforms in power sector (fuel issues & SEB reforms) and movement in policy reforms.

We believe order inflows in the transmission sector will be relatively strong as we expect PowerGrid to maintain its awarding momentum, though competition will persist. Order inflows for the generation side and other industrial sectors are expected to remain tepid until macro headwinds recede.

Valuations of most of the companies in the capital goods sector are at rock bottom levels but we expect the pain to continue at least in H1CY12, until signs of capex revival are not perceived.”

(Sourced from IRIS)