31 of Nifty50 firms exposed to commodity-related risk: BofA Securities

Among sectors with high exposure, raw materials comprise 57% of sales for the discretionary sector, according to BofA's estimates

Rising commodity prices pose a threat to the markets with 31 Nifty50 companies, or 46 per cent of free-float weighted Nifty market-cap, exposed to commodity-related risks, suggests the latest report from BofA Securities. The research and broking house cautions that the full impact of the rise in commodity prices is yet to play out. In this backdrop, it expects the equity market to consolidate.

Among sectors with high exposure, raw materials comprise 57 per cent of sales for the discretionary sector, according to BofA’s estimates, followed by 36 per cent of sales for materials, 31 per cent for staples, 29