Shares of Parle Industries experienced a dramatic surge, hitting the 5% upper circuit for two straight trading sessions. The unexpected rally, which saw the stock reach Rs 5.51, appears to stem from a widespread misunderstanding following a viral online interaction between Indian Prime Minister Narendra Modi and Italian Prime Minister Giorgia Meloni, dubbed the “Melody” moment.
Investors seemingly confused the BSE-listed Parle Industries with the unlisted FMCG giant Parle Products, known for its popular 'Melody' toffee and other confectionery. This mistaken identity led to a significant buying momentum in Parle Industries, a company primarily engaged in infrastructure and real estate development, as well as trading in paper and recycling products.
Parle Products, the Mumbai-based firm behind iconic brands like Parle-G biscuits, Monaco, and Hide & Seek, clarified through its Vice President Mayank Shah that it has no connection with the publicly traded Parle Industries. Shah emphasized that Parle Products itself is not listed on any stock exchange. The company, however, separately noted the strong growth of its actual 'Melody' toffee brand, which is India's largest toffee brand and distributed in nearly 100 countries.
The market capitalization of Parle Industries rose to Rs 26.91 crore following the two days of rapid gains. On the preceding day, the stock had also closed at its upper circuit limit of Rs 5.25. This incident highlights how social media trends can inadvertently impact market sentiment, even when based on erroneous associations.