Hindustan Unilever falls 7% in two days

The stock dipped nearly 5% at Rs 870, extending its previous day's 2.6% fall on the National Stock Exchange.

Shares of fast moving consumer goods (FMCG) major Hindustan Unilever dipped nearly 5% at Rs 870, extending its previous day’s 2.6% fall on the National Stock Exchange (NSE), on the back of heavy volumes.

Till 1513 hours, a combined 2.48 million shares change hands against an average around 1.3 million shares that were traded daily in the past two weeks on the NSE and BSE.

The share price of Hindustan Unilever witnessed a strong rally at the start of this year, sprinting from Rs 760 to Rs 981 levels in March 2015. The stock has outperformed the market by gaining 23% compared with less than 4% rise in CNX Nifty till April 17, 2015.

Analysts feel risk-averse investors are exiting in FMCG counters owing to the steep valuations most of these stocks command ahead of the March quarter earnings announcements, amid slowing rural consumption. CLICK HERE TO READ FULL REPORT