BOFA: Soaring commodities an earnings risk: BofA

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“Most corporations are pushing for price curtailments to avert cost-push, however we imagine, margin pressures can’t be dominated out,” the brokerage stated.

Synopsis

Sectors reminiscent of 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 price pressures, the brokerage stated. Financials and know-how companies corporations will, nevertheless, not be affected.

Mumbai: Rising commodity costs may weigh on earnings of 31 corporations on the Nifty, comprising 46 per cent of the free-float weighted market capitalisation inside the index, based on Financial institution of America Securities.Sectors reminiscent of 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 price pressures, the brokerage stated. Financials and know-how

ET Bureau

Feb 23, 2021, 07:45 AM IST

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