Shares of 3M India are doing well. Know why

Shares of 3M India, a maker of adhesives, car polishes and the ubiquitous Stick-Ons, rose more than 1 percent in early deals after a top official said its parent would raise investments in India to make the local unit a global sourcing hub.

3M India, which is a thinly traded stock owing to its high price, rose 120 rupees to quote at 8,321 on volumes of 1,612 shares in the first hour of trade on the National Stock Exchange. This in comparison with a 5-day average volume of 2,132.

H C Shin, Executive Vice President for International Operations said parent 3M, a Fortune 500 company, was keen to bring in more investment into India post the changes that had happened after 2014's elections.

Parent 3M owns 75 percent stake in 3M India, where more than $100 million has been invested over the past 15 years. 3M India's market capitalisation has surged 75 percent to 9,300 crore rupees in the past one year.

(Image credit: Indiatimes)