Mumbai: A day after Prime Minister Narendra Modi gifted Melody toffees to Italian Prime Minister Giorgia Meloni, retail investors raced to buy the maker of the candy — and many landed on a company that has nothing to do with it. Parle Industries’ shares rose about 5% on Thursday to Rs 5.51, even though the company had no news, earnings surprise, or business update.
The mix-up began when Meloni posted a viral reel featuring PM Modi and a reference to the famed “Melody” toffee, as reported by NDTV.
Traders trying to buy into the brand discovered the actual manufacturer, Parle Products, is an unlisted private company whose shares are not available on the stock market. So traders did what markets often do in a frenzy — they chased the nearest listed name and piled into Parle Industries, even though it has nothing to do with Melody toffees.
Momentum Trading Takes Over
Market watchers say the initial move probably came from mistaken identity. However, the continued upswing points to momentum trading feeding on itself. In smaller stocks, a social media buzz can bring in traders initially, and then more investors jump in hoping the price will keep rising.
Abhishek Bhilwaria, an AMFI-registered mutual fund distributor, explained the trend: “The ‘Melody-Parle’ rally is a perfect example of herd mentality and why proper research matters in investing. The stock first hit a 5 per cent upper circuit after the viral Modi-Meloni ‘Melody’ reel, and the momentum continued as retail traders rushed in, operators joined the move, and social media kept amplifying the story.”
Who wins, who loses?
For early entrants the surge can deliver quick profits; latecomers risk being left holding the bag when the euphoria fades. Analysts warn such name-driven frenzies frequently decouple prices from fundamentals and reverse sharply once clarity spreads or trading interest wanes.
The episode shows how a viral moment can quickly affect stocks, especially when a company has a similar name or low trading volume. Social media can add to the buying rush and push prices higher.
Bhilwaria’s advice was simple, though. “Always verify the actual business before investing, instead of following social media trends or ticker-name hype,” he suggested.
