Nestle India shares rose more than 3% on Thursday as investors cheered better-than-expected sales, boosted by improving demand and weaker prices for some commodities, although there is no profit.

Shares of Nestle on the BSE were up 2.8% at Rs 19,070 at 12:13 pm.

Nestle India was also encouraged by the significant increase in sales in rural markets during the quarter, which, according to the FMCG company, bodes well for credible momentum ahead.

The company said some commodities, including edible oils and packaging materials, are showing signs of weakness. Nestle India added that the cost of fresh milk, fuel, grains and green coffee is expected to remain firm as demand and volatility continue to increase.