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Higher commodity prices have dented Corporate India's Q3FY22 margins said HDFC Securities in a research report.

According to the report, the ongoing results season is behaving largely on expected lines as far as topline growth is concerned.

However, margins across the board have fallen mainly due to higher commodity prices.

Lately, Covid triggered supply side issues as well as other global developments have pushed commodity prices higher.

Besides, it pointed out that the inability to fully pass higher cost due to "not so robust demand" especially from the rural side have added to the trend.

"Some large corporate results are yet to report and one will watch as to whether the trend continues or reverses."

"Q4 also will see some impact of the latest Omicron related disruptions."

Amongst sectors, stocks of PSU banks have performed well.

However, refining, consumer durables, cement sectors stocks have performed below expectations.

"Among sectors, textile, sugar or ethanol, engineering, PSU Banks, footwear, select chemical, steel, media, and IT stocks have done well."

"Auto, paints, Life Insurance, pharma, refining, consumer durables, cement sectors have disappointed."