The share price of Hindustan Lever Ltd (HLL) ended 0.71 per cent down at Rs 174.90 today on reports of the company being told to stop production and exports of its seafoods by the Directorate of the Export Inspection Agency.
Some of the countries in the European Union have rejected items exported by the company on the ground that these products contained high level of antibiotics.
The scrip opened at Rs 175.05 on the Bombay Stock Exchange (BSE) and went to a high of Rs 177 in intra-day deals. The traded volume on the counter was 1.82 lakh shares and on the National Stock Exchange at 3.83 lakh shares.
HLL has a weightage of 16 per cent on the Sensex and little movement either way has significant impact on the index. In the last seven trading sessions, the scrip has lost 2.5 per cent.
Dealers said that the counter has also been impacted by the weak market sentiment and the general bearishness in the fast moving consumer goods segment. However, companies in this sector are looking up and margins are expected to improve, according to analysts tracking the sector.
According to market players, HLL was known for following high quality standards and the fact that its products were rejected had upset the market.
Analysts, however, ruled out any long term impact on the market, saying that if revenues were not affected then the stock will bounce back.
