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:

Infrastructure - Underperform
CY11 saw Construction & Infrastructure stocks underperforming the broader indices on account of tightening policy rates, muted order inflows across segments (except roads) & rising commodity prices affecting execution and margins. At the onset of CY12, we are at the cusp of regime where rate cut is expected (impact to be seen from H2CY12 onwards in financials) and commodity may cool off bringing down the project cost for developer and working capital for contractors. However, we maintain our cautious view due to policy stance on various issues such as fixation of aero charges for airports, delay in environment clearance & land acquisition issues.

(Sourced from IRIS.com)