The results for 44 Nifty companies declared so far shows net profit growth of above 19 percent YoY.
When margins come under pressure, only businesses that can pass on the increasing costs to customers can retain profitability.
There are some concerns on the macro front like the high debt-to-GDP ratio that’s now at 90 percent, crude spikes that can be another headwind, and inflation that will rise in the coming months putting pressure on the RBI to depart from the accommodative monetary stance.