But the inflation in global commodities will have limited impact on Nifty stocks, according to a note from Motilal Oswal Financial Services. The brokerage looked at the historical impact of commodity inflation on stocks. “Rising global commodity prices have historically had a positive impact on aggregate index earnings for the last 12 years," stated the note. “We expect the impact of rising commodity costs on the Nifty to be limited. The IT sector, which constitutes 15% of the Nifty weight, is broadly insulated from commodity inflation," according to the research note.

Source: Mint May 25, 2021 08:48 UTC