Nestle India shares jumped as much as 8-10 per cent at one time on Wednesday after a Food Safety Standards Authority of India (FSSAI)-approved laboratory found Maggi noodles to be in compliance with the country’s food safety standards.
As of 10.15 am., Nestle India shares traded 6.5 per cent higher at Rs 6,776 and outperformed BSE Sensex, which was trading with 0.77 per cent gains.
Nestle had to withdraw all varieties of the popular noodles in June amid country-wide scrutiny on Maggi for high content of monosodium glutamate (MSG) and lead in some samples.
The FSSAI later banned the snack, ruling it “unsafe and hazardous”. Nestle had challenged the decision in the Bombay High Court, which has concluded hearing. A judgement is expected at a later date.
The controversy over Maggi noodles has weighed on Nestle’s financial performance; the company slipped to a second-quarter loss as sales fell 20 per cent because of the withdrawal of Maggi noodles from domestic markets. Nestle also reported one-time loss of Rs 452 crore in the quarter.