Nestle India shares soar 7.5% as FSSAI-approved lab finds Maggi noodles to be safe

Nestle India shares jumped as much as 10 per cent in the early trade on Wednesday after a FSSAI-approved laboratory Central Food Technological Research Institute found Maggi noodles to be in compliance with the country’s food safety standards.

Nestle India stocks, sensex
Nestle India on Thursday sought the Supreme Court's nod for destroying 550 tonnes of Maggi stocks that have outlived their shelf life. (Reuters)

Nestle India shares jumped as much as 10 per cent in the early trade on Wednesday after a Food Safety Standards Authority of India (FSSAI)-approved laboratory Central Food Technological Research Institute (CFTRI) found Maggi noodles to be in compliance with the country’s food safety standards.

At 12.26 pm, Nestle India share price was trading 6.01 per cent higher at Rs 6,735. It opened at Rs 6,762 and touched a high of Rs 7,000 and a low of Rs 6,605 so far. Meanwhile, the BSE Sensex was trading 0.74 per cent higher at 28,280.36 at the same time.

The scrip closed 7.53 per cent higher at Rs 6831.95.

CFTRI had tested five samples sent by Goa Food and Drug Administration (FDA) when Maggi was banned in June in the wake of findings in Uttar Pradesh and other states that the instant noodles brand had lead levels beyond permissible limits.

Nestle India reported a loss of Rs 64.40 crore last week for the second-quarter ended June 2015 against net profit of Rs 287.86 crore in the corresponding quarter a year ago.

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