As the controversy over the traces of lead in India’s favourite snack- Maggi instant noodles are evident to come true; the stock market too; resembled a chameleon changing its colours.
On Wednesday, the stock price of Nestle crashed over 11 per cent in intra-day trades on Wednesday and shut 9 percent lower.
The controversy has already shown its music in the states of Tamil Nadu, Uttarakhand, Gujarat, and Jammu and Kashmir.
Layered in the downgraded stocks, clients were asked to offload their holdings in the company.
Over the last three consecutive sessions, Nestle India showed drastic failings; however it gained its balance on Friday, closing the margins higher on NSE and comparatively lower on BSE.
On May 6, the stocks priced for Rs.6795 while on June 5 it priced for Rs. 5,997.
“Numbers is likely to be moderate-to-substantial, depending on the pace of (1) resolution of issue at hand, and (2) regaining consumer confidence” the analysts wrote.
Tags: Maggi Maggi ban Maggi controversy
