BackNestle India shares jump 7.5% after Maggi clears Singapore safety norms
Intra-day, the shares rose as much as 9.75% to Rs6,080 a piece on BSE
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New Delhi: Shares of Nestle India Ltd rose as much as 9.75% to ₹ 6,080 a piece on BSE on Tuesday, for the first time since 21 May, following media reports that Maggi has met safety standards in Singapore.
The Agri Food and Veterinary Authority of Singapore (AVA) on Monday said Maggi noodles produced in India are safe to eat, as food safety tests found that it does not pose risks to consumers, according to a report by The Straits Times, Singapore.
Singapore had put restrictions on import of Maggi noodles from India last week. Since 21 May, Nestle India’s stock has lost 20.29%, from ₹ 6,950.30 to ₹ 5,539.80.
Singapore’s AVA had collected samples of Nestle’s Maggi noodles produced in India for testing after Food Safety and Standards Authority of India (FSSAI), India’s food safety regulator, on 5 June asked Nestle India to recall all nine variants of Maggi noodles from the market, calling them “unsafe and hazardous" for human consumption.
Nestle India said it would withdraw the products, but continued to insist that the products were safe.
Shares of Nestle India closed 7.47% higher at ₹ 5,953.80 apiece, while the benchmark Sensex declined 0.16%, or 41.84 points, to 26,481.25.
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