Shares of Parle Industries gained momentum on Tuesday after Prime Minister Narendra Modi gifted a packet of Melody candy to Italian Prime Minister Georgia Meloni during his visit to Italy. Due to this, the Melodi trend which was going viral online came into discussion again. Shares of Parle Industries rose 5 percent intraday to Rs 5.25. Even in the last one week, a rise of about 7 percent was seen in this stock. However, there is an important catch in this. Listed company Parle Industries does not actually manufacture Melody Toffees. After Modi-Meloni’s melody video went viral, the stock of Parle Industries IT company reached the upper circuit. Due to the similarity in the name, social media users competed to buy the stock of Parle Industries. The company has no relation with Melody Toffees or Parle Products.
Who makes the melody?
Melody is manufactured by Parle Products. It is a well-known FMCG company, famous for brands like Parle-G, Monaco, Crackjack, Mango Bite and Poppins. Parle Products is a private company and is not listed in the stock market. At the same time, Parle Industries is a separate company listed on BSE and it has no direct business relation with Melody Toffees. This seems to be a case where small investors and traders associated the name Parle with a viral melody moment and raced to buy shares of a listed company with the name Parle.
Reason for rise in shares of ‘PARLE’
This rally started when a funny video of Modi and Meloni went viral online. In this clip, PM Modi was seen gifting a packet of Melody toffees to Meloni. Many users considered this to be a humorous reference to the popular catchphrase #Melodi used online for both the leaders. Later Meloni shared this clip on X and wrote, thank you for the gift.
In the video, he was also heard saying, he has gifted a very, very good toffee, after which both the leaders laughed. This video quickly went viral and received millions of views, reactions and comments on social media platforms. As soon as this clip gained popularity, there was strong buying in the shares of Parle Industries.
Stock movements affected by social media
Such cases are increasing rapidly on Dalal Street, where due to social media discussions, viral trends or misunderstanding regarding the names of companies, there is a sudden rise or fall in the shares. Small and low-priced stocks often rise suddenly when small traders link them to a trending topic, even if that topic has no direct impact on the company’s business.
Despite today’s gains, Parle Industries shares have remained under pressure for a long time. This stock is still trading down 41% percent in the last three months. There has been a loss of 46 percent in the company’s shares in the last 6 months. Whereas the company’s shares have seen a decline of 68 percent in one year. This change reflects how viral moments and online trends are increasingly influencing trading activity in certain parts of the market.
