Kotak downgrades HUL stock

Kotak Institutional Securities has downgraded Hindustan Unilever to ‘reduce’ from ‘add’ on a likely deceleration in 2012 volume growth,negative impact of new standard packaging regulations,depreciation of the rupee raising input costs and the recent outperformance of the stock.

In the balance,we see downside risks to HUL’s business emerging,said Kotak in a note.

At 10:25 a.m,shares of Hindustan Unilever were down 0.9 percent at 388.85 rupees.