Quarterly results increase investors’ tension, Hindustan Unilever shares fall by 5% Quarterly results raise investor concerns; Hindustan Unilever shares slump up to 5%. – ..

Strong profit booking is being seen in the shares of FMCG sector giant Hindustan Unilever Limited (HUL) in the Indian stock market today. After the results of the recent quarter of the current financial year came out, there is an atmosphere of pessimism about the company’s stock in the market. Due to weak quarterly results and lower than expected profits, HUL shares fell by about 5% in early trade today. After this fall, everyone’s eyes from retail investors to big market experts are fixed on the next move of this stock.

HUL’s profit did not meet expectations

Market analysts had expected the company to perform better this quarter due to increased demand in rural areas, but the actual figures lagged far behind expectations. The company’s net profit has been less than the estimates of market experts, which directly affected the sentiment of investors. The rising cost of raw materials and tough competition in the domestic market are being considered as the main reasons for this weak performance.

Where did the share price reach after 5% fall?

Immediately after the results were announced, heavy selling pressure was seen in HUL shares on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The stock fell 5 per cent to its recent low. Stock market experts say that after this big fall on the technical charts, there may be some further weakness in the stock, unless buyers become active again at lower levels. Brokerage houses in major financial centers like Mumbai and Delhi have also changed their immediate ratings after this quarter.

What do market experts say: buy, sell or hold?

After this big fall, the opinion of the major brokerage houses of the country seems to be divided. Some experts believe that this fall in the shares of an FMCG company with strong fundamentals like HUL can be a great ‘buy on dips’ opportunity for long term investors. At the same time, short term traders are being advised not to act hastily and let the stock form a stable support level.