January 9, 2026 – Eqwires Best Intraday tips provider in India, top trading tips company, Best Stock Advisory service in India

Hindustan Unilever Limited (HUL), India’s largest fast-moving consumer goods (FMCG) company, has been served with an income tax demand of ₹1,559.69 crore for the financial year 2021–22 (assessment year 2022–23). The order was issued by the Assistant Commissioner of Income Tax, Central Circle 5 (2), Mumbai, under Section 143(3) read with Section 144C(13) of the Income Tax Act, 1961. The demand notice, raised under Section 156 of the Act, was received by the company on January 7, 2026.

Details of the Tax Demand

Nature of the Order: The demand relates to transfer pricing adjustments and corporate tax disallowances connected to payments made to related parties.
Company’s Response: HUL has clarified in its regulatory filing that the order will have no material impact on its financial position, operations, or other activities.
Next Steps: The company has confirmed that it will file an appeal with the appellate authority within the permissible timeline, challenging the assessment order.
No Penalties: Importantly, the order does not impose any penalties, sanctions, or restrictions on HUL’s operations.

Market Reaction

Shares of HUL came under focus following the announcement, though the company’s reassurance of no material impact helped limit investor concerns. Analysts believe that while such tax demands can create short-term uncertainty, the company’s strong fundamentals and market leadership in the FMCG sector provide resilience.

Broader Context

Tax disputes involving transfer pricing adjustments are not uncommon for multinational corporations operating in India. These disputes often revolve around the valuation of transactions with related parties. HUL’s decision to appeal is consistent with industry practice, and the outcome will depend on the appellate authority’s review.

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Conclusion

The ₹1,560 crore tax demand on HUL highlights the ongoing complexities of corporate taxation in India, particularly around transfer pricing. While the company has assured stakeholders of no material impact, the appeal process will determine the final outcome. For investors, the case underscores the importance of monitoring regulatory developments alongside market fundamentals.

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Indian equity markets witnessed another turbulent session on January 9, 2026, as selling pressure dominated across sectors. The Nifty closed at 25,700, while the Sensex tumbled by 540 points, marking the second consecutive day of weakness. Investor sentiment remained fragile, with global cues and domestic uncertainties weighing heavily on trading activity.

Market Overview

Indices Performance: The Sensex ended lower by 540 points, while the Nifty settled at 25,700, reflecting widespread bearishness.
Sectoral Trends: Heavyweights such as Adani Enterprises, Shriram Finance, NTPC, ICICI Bank, and Jio Financial dragged the Nifty down with sharp declines. On the other hand, selective buying in Asian Paints, ONGC, Bharat Electronics, and HCL Technologies provided limited support.
Investor Sentiment: Traders adopted a cautious approach throughout the day, with no significant recovery seen even in the final trading hours. Broader indices also mirrored the weakness, highlighting the depth of the sell-off.

Key Drivers of Market Weakness

Global Market Trends: Weakness in international markets, particularly in Asian equities, added to the negative sentiment.
Profit Booking: After recent rallies, investors engaged in profit booking, leading to sharp declines in frontline stocks.
Sectoral Pressure: Banking, financial services, and energy stocks bore the brunt of the selling, while IT and FMCG showed resilience.
Volatility Indicators: Rising volatility suggested heightened investor nervousness, with traders preferring defensive strategies.

Stock Highlights

Losers: Adani Enterprises, NTPC, ICICI Bank, and Jio Financial faced heavy selling.
Gainers: Asian Paints, ONGC, Bharat Electronics, and HCL Technologies managed to attract buyers, partially offsetting losses.

Outlook Ahead

Market experts suggest that short-term volatility may persist, with global cues and domestic earnings season playing a crucial role in determining direction. Investors are advised to remain cautious, adopt selective buying strategies, and focus on fundamentally strong stocks.

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