HUL Share Price in Focus After Inflation Data Release

On December 13, 2024, Hindustan Unilever’s share price (NSE: HINDUNILVR) traded 0.21% higher at ₹2,349.80 as of 11:30 AM on the NSE. The stock opened at ₹2,344.95, unchanged from its previous close. Over the past 5 days, HUL has lost 6%.

November Inflation Data

India’s retail inflation eased to 5.48% in November, following a rise above the RBI’s 6% upper tolerance limit in October.

The decrease was driven by the arrival of fresh produce, which helped bring down the high vegetable prices. Food inflation, which accounts for about half of the Consumer Price Index (CPI), slowed to 9.04% in November, down from 10.87% in October.

Meanwhile, rural inflation rose to 9.10% from 6.68% in the previous month, while urban inflation increased to 8.74%, up from 5.62% in October.

A reduction in inflation is likely to be a relief for households in India, the world’s most populous nation, where a significant portion of budgets is spent on food.

FMCG Stocks Under Pressure 

Fast-moving consumer goods (FMCG) stocks have been under pressure since the start of this month.

As per news reports, Godrej Consumer Products announced weak demand for the third quarter, as the urban demand slowdown may continue to impact volumes and margins beyond the third quarter.

Godrej Consumer Products stated that the FMCG market has experienced subdued demand in recent months, which has affected growth. The increase in palm oil and derivatives prices has particularly impacted the soaps category, prompting the company to implement price hikes.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.