Fast moving consumer goods (FMCG) major Hindustan Lever Ltd (HLL) continued to leap on the bourses on fund-based buying following the company's foray into the healthcare segment with the launch of ayurvedic products.
On the Bombay Stock Exchange (BSE), the stock settled 4.46 per cent higher at Rs 197.95 with more than 6.30 lakh shares changing hands.
The stock has risen 5.70 per cent from Rs 184.85 on May 31 to its current level.
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Dealers said, "The US-based foreign institutional investors (FIIs) were active at the counter and is reported to have picked a huge chuck in the last two sessions." It may be recalled that a major domestic fund was the biggest seller at the counter last week.
Analysts point out that the renewed buying interest from FIIs is mainly on account of its favourable valuation. Also, the stock being a defensive bet also invite attention going by the current political uncertainty.
HLL's recent entry into the Rs 2,000 crore ayurvedic healthcare segment has also contributed to the scrip's rise. The company launched the Lever Ayush ayurvedic health and beauty care range, which includes five products -- Cough Naashak, Headache Naashak Roll on, Hair Poshak oil, Dandruff Naashak Shampoo and Body Rakshak Soap.
The FMCG major plans to create a Rs 300 crore brand over the next three years. Analysts say the latest foray should prove beneficial for the company, but to capture the market share and make a name for itself in the ayurvedic segment will be a tough job as other major players such as Dabur, Zandu and Himalaya Drug Company have taken up a vast share of the market.