The space is being watched keenly as it has significant growth potential, with efforts being made to meet the demand of a growing population and increasing urbanisation as well as industrialisation.
India’s energy sector will also have a huge influence on global trends, including the prospects of a successful response to climate change concerns.
Conventional methods of energy generation using fossil fuels have not proved to be very cost-effective and also have an adverse impact on climate and the environment.
However, the present scenario is not rosy for this space, at least in short term.
In the international market, the dollar index is also on the rise, one of the reasons the Indian rupee is depreciated against the American currency.
Nifty Energy is expected to take a healthy correction in the next two or three months and the index may slip to 18,000 before bouncing back.