NAV jacking lifts Nestle

Last day of every month is the ‘NAV jacking’ day for most fund managers. Several stocks are routinely bought by fund managers so that their portfolio factsheet for the month looks all neat and dressed up, for issuing to their clients and distributors. Friday was no different.

Push up stocks, which form a medium to large part of their portfolio and viola, your NAV is all bubbly and full of life. Nestle was one of the main beneficiaries of this phenomenon.

It rose close to 6% amid thin volumes. Many fund houses own the stock and it forms a sizeable part of their portfolio. Besides, there are always rumours that the Indian subsidiaries of most multinational corporations are trying to delist from Indian bourses.