Parle Industries’ share price hit the 5% upper circuit on Wednesday, 20 May, led by strong buying momentum in the counter as investors reacted to the “Melody” moment that went viral online involving Prime Minister Narendra Modi and his Italian counterpart Giorgia Meloni.
The small-cap penny stock rallied as much as 5% to ₹5.25 apiece on the BSE.
The rally in Parle Industries shares was supported by heavy volumes. Over 8 lakh equity shares of Parle Industries changed hands on stock exchanges, significantly higher than its one-week average trading volume of 2 lakh shares and its one-month average volume of 3 lakh shares.
Why are Parle Industries shares rising?
Earlier today, Italian Prime Minister Meloni revealed in a social media post that PM Modi had gifted her a pack of Melody toffees. The development sparked investor interest in the small-cap penny stock, despite the company having no connection with the popular confectionery brand.
Parle Industries is a BSE-listed company specialising in infrastructure and real estate development. Additionally, it trades in paper, paper waste, and related recycling products. On Wednesday, trading volumes of Parle Industries shares spiked
Caught in the confusion trade
The Melody toffee brand, on the other hand, is owned by Parle Products, an FMCG company based in Mumbai, which is recognised for brands such as Parle-G, Monaco, Hide & Seek, and Mango Bite. However, Parle Products operates as a privately owned entity and is not listed on the Indian stock market.
According to a CNBC-TV18 exclusive interaction with Mayank Shah of Parle Products, the recent “Modi-Meloni Melody moment” has helped place Indian products on a larger global stage. Shah said the company is not considering a stock market listing at present and prefers to remain privately held. He also expressed gratitude to Prime Minister Narendra Modi for giving the brand global visibility through the widely discussed gesture involving Melody toffees.
Shah noted that Melody has already been exported to more than 100 countries and expects the viral social media moment to drive strong traction for both domestic and international sales.
Parle Industries share price
Parle Industries shares have remained highly volatile despite the recent upper-circuit rally linked to the viral “Melody diplomacy” buzz. The stock has gained 5.63% over the past one week and nearly 4% over the last month. However, the broader trend remains weak, with the stock down 35% in the last three months and over 41% on a year-to-date basis.
The sharp decline over recent months highlights continued pressure on the small-cap counter, even as short-term momentum returned following social media-driven investor interest around the Melody toffee conversation involving Modi and Meloni, according to market experts.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
