BOFA: Soaring commodities an earnings risk: BofA

0

“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

  • GIFT ARTICLE
  • FONT SIZE
  • SAVE
  • COMMENT

Sign in to read the full article

You’ve got this Prime Story as a Free Gift

Already a Member?

Why ?

  • Sharp Insight-rich, Indepth stories across 20+ sectors

  • Access the exclusive Economic Times stories, Editorial and Expert opinion

  • Clean experience with
    Minimal Ads

  • Comment & Engage with ET Prime community

  • Exclusive invites to Virtual Events with Industry Leaders

  • A trusted team of Journalists & Analysts who can best filter signal from noise

FOLLOW US ON GOOGLE NEWS

 

Source

Comments
Loading...

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. AcceptRead More

Privacy & Cookies Policy