Nestle shares continue to fall; down 3% on Maggi row
Mumbai: Extending its downtrend for the second straight session today, stock of Nestle India fell by nearly three per cent on mounting trouble for its popular Maggi noodles brand over concerns related to its safety standards.
The stock fell by 2.91 per cent to settle at Rs 6,010.80 on the BSE. During the day, it slipped 6.31 per cent to Rs 5,800.10.
On the NSE, the stock ended with a loss of 2.94 per cent at Rs 6,004.45.
“Nestle continued to feel the investor fury as it corrected by further three per cent towards the day’s end after correcting almost six per cent intra-day,” said Hiren Dhakan, Associate Fund manager, Bonanza Portfolio Ltd.
In yesterday’s session, the stock had lost nine per cent.
The company’s market valuation has dipped Rs 7,680.44 crore to Rs 57,953.56 crore in two consecutive trading sessions.
Maggi noodles was yesterday banned in Delhi for 15 days, while its sale was stopped in Big Bazaar outlets even as more states ordered testing of its samples.
As food safety concerns over the two-minute Maggi noodles rose, the Centre filed a written complaint before the National Consumer Disputes Redressal Commission (NCDRC) against the Indian arm of the Swiss multinational for alleged violations of safety standards.
The Indian Army issued an advisory yesterday asking its personnel not to consume Maggi noodles and directed its canteen to set aside the existing stock till further orders.
Meanwhile, in the stock market, the BSE benchmark Sensex ended at 26,813.42, down 23.78 points.