BOFA: Soaring commodities an earnings risk: BofA

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

Synopsis

Sectors such as discretionary, materials, staples, energy and industrials could be most at risk, while healthcare and utilities should be able to pass on commodity cost pressures, the brokerage said. Financials and technology services companies will, however, not be affected.

Mumbai: Rising commodity prices could weigh on earnings of 31 companies on the Nifty, comprising 46 per cent of the free-float weighted market capitalisation within the index, according to Bank of America Securities.Sectors such as discretionary, materials, staples, energy and industrials could be most at risk, while healthcare and utilities should be able to pass on commodity cost pressures, the brokerage said. Financials and technology

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