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:

Power - Underperform
The power sector in CY11 was characterized by robust capacity addition (12737 MW taking total capacity to 185,496 MW), tariff hikes, fuel shortages, back down by SEBS, change in Indonesian coal law and rise in interest rates. We expect capacity addition to be robust in CY12 (our bottom up analysis suggests that nearly 9400 MW can be added in CY12). We are cautious as structural issues like policy reforms and fuel shortages are more critical than cyclical factors like falling interest rates. One should stick to regulated entities like NTPC, NHPC (regulated players, less fuel risk, high Actual Contract Quantity from Coal India, sustainable earnings growth via capacity addition).

(Sourced from IRIS.com)