Markets welcome Nestle's comeback with a bash

Shares of Nestle Ltd., maker of the famous Maggi noodles, posted its best percentage gain since October 2007 after a government approved lab said its noodles were safe for consumption.

Nestle has had nightmarish 2 months after a UP-based government lab, run by the Foods inspecting agency: FSSAI, said it had found unacceptable levels of Lead in Maggi noodles. Nestle denied the charge. As a consequence, many states took Maggi off their shelves, prompting the company to announce a nationwide recall of existing stocks.

The latest testing in a FSSAI approved lab resulted in Maggi being safe for public's consumption.

As a consequence, Nestle surged 5.4 percent, or 345 rupees, to 6,696 rupees on the National Stock Exchange, where 2.54 lakh shares were traded compared with the 5-day average of 1.15 lakh shares. The stock had surged as much as 10.2 percent earlier.

(Image credits: Indiatimes)