Morgan Stanley downgraded Hindustan Unilever Ltd to 'underweight' from 'equal-weight', citing disappointing October-December volume growth and the impact on earnings from its hike in royalty payments.

Morgan Stanley also cut its price target to 405 rupees from 510 rupees. A slew of other banks have also cut their ratings on Hindustan Unilever after its quarterly results on Tuesday.

Hindustan Unilever shares were down 5.3 percent as of 0348 GMT.