HUL shares down after Unilever warns of slow India sales

Shares of Hindustan Unilever fell today after investors turned bearish on the stock as parent Unilever warned on Monday that a slowdown in emerging markets accelerated in the July-September quarter.

According to Reuters, the Anglo-Dutch consumer goods major warned it now expects underlying sales growth of 3 to 3.5 percent during the period.

[caption id=“attachment_741425” align=“alignleft” width=“442”] Reuterss[/caption]

Developed markets remained flat to down, it said, and overall Unilever said it was on track to meet its 2013 priorities. It attributed the emerging markets slowdown to a significant currency weakening.

“We continue to grow ahead of our markets and expect underlying sales growth to improve in quarter four,” Chief Executive Paul Polman said.

At 1:37 p.m, the stock was down 1.3 percent at Rs 619.50.

“I would not be a buyer in HUL especially after today’s trading session and the way in which the stock has moved in today’s trading session. There is a small breakdown, but Rs 580 is a decent support. So testing Rs 580 is quite likely for HUL,” Shardul Kulkarni of Angel Broking told CNBC-TV18 earlier today.