31% rally in India's energy sector, driven by domestic demand and policy incentives.

India's energy sector, led by state-owned companies, experiences a 31% rally this year due to rising domestic demand and expectations of higher dividends. The Nifty Energy Index, driven by rapid energy consumption growth and policy incentives to boost domestic oil and gas production, attracts foreign investors. The sector's anticipated outperformance is attributed to hardware upgrades, free cash flow, and higher-quality returns.

August 27, 2024
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