Prime Minister Modi's gift of Parle Melody toffees to Italian PM spurs unrelated Parle stock rally
New Delhi, May 20
Prime Minister Narendra Modi's gesture of gifting Parle Melody toffees to his Italian counterpart Giorgia Meloni on Tuesday sparked unexpected activity on the domestic stock market, pushing up shares of an unrelated listed firm that shares the "Parle" name.
The spike followed Modi's publicised "Melody moment," when he presented a pack of Melody toffees to Giorgia Meloni. The Italian prime minister posted on X to thank Modi, amid lighthearted online reaction that used "Melody" to underscore their camaraderie.
Parle Products Private Limited which manufactures the Melody brand toffee however clarified that their company had no link with the BSE-listed company that gained traction.
"So there is one listed company by the name of Parle Industries. They are, I think, into construction. But we have nothing to do with them. That's a separate and different company altogether. So I think people are mistaken by the fact that they also have a name, Parle, as a part of their company name, and we are also Parle. But we have nothing to do with each other, that's a construction company," said Vice President Mayank Shah
Shares of Parle Industries Limited, an infrastructure and real estate developer listed on the BSE, hit the five per cent upper circuit on Wednesday.
"I think what is happening is people are misunderstanding Parley Industries as this company having Melody and I think that's the reason why you're seeing a lot of traction in the stock of that particular company today," Shah added.
Parle Products however took pride in the PM choosing the Indian toffee brand to signify India-Italy friendship
"It's a moment of immense pride for all of us at Parle Products when Prime Minister Narendra Modi gives Parle Melody to world leaders. I think it is a powerful testament of the potential of Swadeshi brands on the global stage. I think it's his nature to promote Swadeshi brands and this is an attempt to promote that....So I think while as a Prime Minister, he has done his job to give us that kind of opportunity, it is now up to us to lap it up," Shah said.
Speaking on global ambitions, Shah said, "While we are number one here, the attempt now would be to be a significant brand globally. We are available in more than 100 countries. And going forward, I think we will be looking at scaling it up across the globe."
Earlier, responding to the attention on social media, Parle Products posted on X, "Thank You Hon'ble Prime Minister Shri Narendra Modi for taking Parle Melody to the global stage. A proud moment for all of us at Parle Products to see an Indian favourite being shared across borders."
— ANI
Reader Comments
As an Indian, I love seeing our PM promote Swadeshi brands on the global stage. But honestly, the stock market reaction shows how easily retail investors get misled without doing basic research. Parle Industries should probably issue a clarification fast to stop this speculative frenzy. Kudos to Parle Products though - from a small Mumbai bakery to a global brand. Amazing journey!
Yaar, this is peak Indian investor behavior. Someone sees a tweet about Melody toffees and immediately starts buying shares of a construction company just because it has "Parle" in the name. Market ka mamla hai, koi logic nahi! But on a serious note, great to see Modi ji promoting Indian products. Parle Melody is a classic - reminds me of my school days. 🍬
While I appreciate the gesture, I think we're overthinking this. It's a nice diplomatic move - giving a local toffee to an Italian leader whose name happens to sound like the product name. But the stock market reaction is just noise. SEBI should probably warn people about trading on such unrelated news. Also, Parle should focus on quality rather than just PR moments. Just saying.
As someone who grew up eating Parle Melody, this makes me so happy! 🥰 The fact that the Italian PM posted about it on X shows how small gestures can create big impacts. But please, people, do your research before investing! Don't just buy shares because of a name match. That said, proud Indian moment indeed. Swadeshi for the win! 🙌
R We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.