Shares of Hindustan Unilever fell sharply in early morning trade, slipping nearly 2.7% at one point.
The initial drop was linked to concerns over weak September demand after recent tax reforms.
Retailers reportedly cut down on orders as they adjusted to new pricing structures.
Market participants feared a slowdown in restocking activity during the festival bu
ild-up.
However, the stock managed to recover most of its early losses by afternoon.
It was later down by only 0.2%, showing resilience in investor confidence.
Analysts believe demand will bounce back strongly in November after the ad
justment period.
Restocking by retailers is expected to drive sales in the next quarter.
HUL continues to remain a stable long-term play despite short-term dema
nd issues.
Investors are treating today’s weakness as only a temporary correction phase.