The recent rise in commodity prices has started to hurt a lot of companies. Q2 saw almost all the key sectors beating expectations and the first consensus EPS upgrade was also seen after 23 quarters of downgrades.
Will the momentum continue? While the recovery in the economy has been strong and that bodes well for earnings, what the recovery has also meant is big jumps in the prices of key raw materials. Will it hurt margins and can companies mitigate this? Will the persistent rise in raw material prices start to chip away at profitability of companies or will companies be able to manage this with other levers?
CNBC-TV18’s Prashant Nair has more details.