HUL shares up 9.86% as FTSE,MSCI indices raise weightage

Shares of Hindustan Unilever Ltd rose by up to 12 per cent on Wednesday to hit an all-time high of Rs 698.95

Shares of Hindustan Unilever Ltd rose by up to 12 per cent on Wednesday to hit an all-time high of Rs 698.95 after FTSE and MSCI indices raised their investable weightage on the stock following the completion of the cash open offer by Unilever in HUL and updation of foreign ownership information. HUL scrip closed the day at Rs 684.75,up 9.86 per cent on the BSE.

The FTSE on its website announced on July 12 that HUL will remain in its all-world index and all-emerging index with an increased investability weighting of 33 per cent against the current 24 per cent with effect from July 22.

The news resulted into the jump in the share prices as various funds follow FTSE and MSCI weightages for their asset allocation and with a change in the weightage,these funds will have to increase their allocation into HUL, said V Srinivasan of Angel Broking.

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Led by HUL,FMCG stocks on Wednesday surged by 3.4 per cent. Market experts say that the rise in FMCG prices is also a result of HULs decision to hike prices of some of its products and markets shift to defensives due to rate hike by the Reserve Bank of India.

Abneesh Roy,associate director,institutional equities,Edelweiss Securities,said,We expect promotions and select price hikes to happen in categories like soaps,detergents in coming months due to rupee depreciation.

Market sources told that HUL has raised the prices of a couple of products under the Dove brand by up to 15 per cent. In the broader market,Sensex ended the day 97.50 points up at 19,948.73. The Nifty index of the NSE rose 18.05 points or 0.30 per cent to 5,973.30.

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