Shares of Nestle India rose by nearly 5 per cent today after the Bombay High Court allowed the company to export Maggi noodles.
The stock ended the day with a gain of 4.60 per cent at Rs 6,345.65 on the BSE. During the day, it climbed 5.17 per cent to Rs 6,380.70.
At NSE, shares of the company went up by 4.63 per cent to end at Rs 6,352.20.
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Following the rally in the stock, the company's market value moved up by Rs 2,692.04 crore to Rs 61,182.04 crore.
"Nestle India rallied 4.6 per cent in the day's trading session after the HC allowed it to export Maggi," said Hiren Dhakan, Associate Fund manager, Bonanza Portfolio Ltd.
The Bombay High Court today allowed Nestle India to export Maggi noodles after Food Safety and Standards Authority of India (FSSAI) said it had no objection to the company selling the product abroad though it stood by its decision to ban nine variants of the food snack in the country for being hazardous to public health.
The court was hearing a petition filed by Nestle India challenging the impugned order of June 5 passed by FSSAI banning nine variants of the popular instant food snack.
It had also questioned a similar order by the Maharashtra government prohibiting the sale of the same products on the ground that they were unsafe and harmful for the health of people.
As the suggestion came from FSSAI that it had no objection to the company exporting Maggi to other countries, the high court gave liberty to Nestle India for selling the products outside India if it wanted to, and subject to compliance of rules and health and food safety standards.
