Nestle shares continue to slide; down nearly 8%

Continuing to fall for the fourth straight session on Monday, shares of Nestle India tumbled nearly 8% following more trouble for the company over the Maggi noodles row.

The stock plunged 7.63% to settle at Rs 5,539.80 on the BSE. During the day, it plummeted 8.3% to Rs 5,499.

At the NSE, it ended at Rs 5,569, down 7.36% from its previous close.

In last four trading sessions, the stock has lost nearly 19%, wiping out Rs 12,221.62 crore from its market valuation, which now stands at Rs 53,412.38 crore.

In more trouble for the company, the government may seek damages from Nestle, dragging it to the consumer court for "unfair trade practices and misleading advertisements".

"On behalf of the Indian consumers, the Department of Consumer Affairs has now filed a petition in the National Consumer Disputes Redressal Commission (NCDRC).

"It is based on the order of FSSAI, saying that Nestle indulged in unfair trade practices and misleading advertisements," a senior official said on Sunday.

The development comes amidst the Indian unit of the Swiss multinational withdrawing Maggi from the markets after several states banned the famous '2-minute' instant food brand as tests showed them containing taste enhancer MSG (Mono Sodium Glutamate) and lead in excess of the permissible limits.

Cracking down on the Swiss giant, central health watchdog FSSAI on Friday banned all variants of Maggi noodles terming them as "unsafe and hazardous" for human consumption.