Equity Alert: ITC, HUL up on defensive bet, good earnings outlook
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Equity Alert: ITC, HUL up on defensive bet, good earnings outlook
MUMBAI--2:26PM--Shares of ITC and Hindustan Unilever were among
the top
gainers on Nifty today on defensive buying as the broad market fell
2%, said
dealers and analysts.
ITC was up 3% at 193.70 rupees, while Hindustan Unilever was up
1.5% at
253 rupees.
"Funds are aggressive buyers on the HUL and ITC counters today.
Some big
guys have come in and they are trading heavily...it is mainly
defensive play,"
said a dealer with a foreign brokerage.
He expects the trend to continue for a few more days.
Fundamental analysts said a buoyant outlook on Jul-Sep earnings
was also
lifting sentiment.
"Results are expected to be good. HUL should easily post a 15-18%
growth
in earnings," said Anand Shah, analyst with Angel Broking.
Hindustan Unilever has hiked prices of all its products several
times in
Jul-Sep, including detergents and soaps where raw material costs have
actually come down. This will boost margins, said analysts.
In a recent report on the company, Sharekhan said HUL has hiked
prices
11-20% in its key detergent brands.
The brokerage reiterated its "buy" recommendation on the stock,
keeping a
price target of 280 rupees.
In the case of ITC, the company is expected to report a 3-5% year-
on-year
de-growth in cigarette business, but price hikes that came into effect
this
quarter will boost overall margins, analysts said.
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