MUMBAI (Diya TV) — A packet of Melody toffees gifted by Indian Prime Minister Narendra Modi to Italian Prime Minister Giorgia Meloni sparked a surprising rally in the shares of a little-known Indian software company on Wednesday.
Investors rushed to buy shares of Parle Industries Ltd. after social media users mistakenly linked the company to the famous Melody candy brand. The confusion followed a viral video posted by Meloni that showed Modi gifting her a packet of Melody toffees during his visit to Rome. The incident once again highlighted the growing influence of retail investors in India’s stock market and the risks linked to misinformation-driven trading.
Meloni shared the video on social media during Modi’s visit to Italy. The clip quickly gained attention online because of the long-running “Melodi” meme, which combines the names Modi and Meloni. The meme has circulated widely on social media over the past two years. Users often use it jokingly to describe the friendly public appearances of the two leaders at international events.
Soon after the video appeared online, traders began buying shares of Parle Industries Ltd. The company’s stock jumped 5%, its biggest single-day gain in two months. Trading volumes also surged sharply. More than 800,000 shares changed hands during the session. The stock hit its daily upper trading limit after reversing earlier losses.
Many investors appeared to confuse Parle Industries Ltd. with Parle Products Pvt. Ltd., the privately held company that manufactures Melody toffees and the widely popular Parle-G biscuits. Parle Products is one of India’s best-known food brands. However, the company is not publicly listed on the stock market.
Parle Industries, on the other hand, operates in a completely different business sector. The small company provides ERP software and business services to clients. It has only nine employees and carries a market value of less than $3 million.
Despite Wednesday’s rally, the company’s shares remain down more than 40% this year.
Arun Kejriwal, founder of Kejriwal Research & Investment Services, said the spike clearly reflected investor confusion.No doubt this is a case of mistaken identity,” Kejriwal said. “We are a market where retail participation has continued to grow, and small investors are now a force. But unfortunately, many of them keep falling for misinformation.”
India’s stock market has seen a sharp rise in retail participation in recent years. Millions of first-time investors now trade stocks through mobile apps and online platforms. Market experts say that trend has increased volatility in small-cap stocks, especially companies with names linked to popular brands or major news events.
Several similar cases have emerged in recent years. Shares of unrelated companies have often moved sharply after traders confused them with better-known businesses or trending topics. Thinly traded small-cap stocks remain especially vulnerable because even limited buying activity can push prices higher very quickly. Analysts warn that investors should verify company details carefully before buying shares.
The stock surge came on the same day Modi posted photographs from Rome showing his meeting with Meloni near the iconic Colosseum. The leaders met during Modi’s visit to Italy for diplomatic discussions and international meetings. Their public interactions attracted significant online attention, particularly in India, where the “Melodi” meme remains popular across social media platforms.
