Soaring commodities an earnings risk: BofA


“Most firms are pushing for cost curtailments to avert cost-push, but we believe, margin pressures cannot be ruled out,” the brokerage mentioned.

Synopsis

Sectors resembling discretionary, supplies, staples, power and industrials may very well be most in danger, whereas healthcare and utilities ought to be capable of move on commodity value pressures, the brokerage mentioned. Financials and know-how providers firms will, nevertheless, not be affected.

Mumbai: Rising commodity costs might weigh on earnings of 31 firms on the Nifty, comprising 46 per cent of the free-float weighted market capitalisation throughout the index, in accordance with Bank of America Securities.Sectors resembling discretionary, supplies, staples, power and industrials may very well be most in danger, whereas healthcare and utilities ought to be capable of move on commodity value pressures, the brokerage mentioned. Financials and know-how

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