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NSE Indices Ltd., a subsidiary of the National Stock Exchange (NSE), has recently launched new variants of the Nifty 50 index known as the Nifty 50 Net Total Return (NTR) Index. This new index aims to measure the performance of the Nifty 50 by considering reinvested cash dividends and gains from bonus issues after applying relevant taxes.
Nifty 50 Net Total Return Index will be calculated in Indian Rupee (INR) and US Dollar (USD). For each currency, there are three distinct variants of the index:
- Nifty 50 Net Total Return (INR): This version, in Indian Rupees, reflects the Nifty 50 index's performance. It considers all dividends and bonus gains. Before calculating, it deducts taxes like withholding tax and capital gains tax for a more accurate reflection.
- Nifty 50 Net Total Return (USD): This version, in US Dollars, reflects the Nifty 50 index's performance similarly to the INR variant.
Again, there will be three different versions for both currencies.
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- Nifty 50 Price Return (PR): This variant reflects the price performance of the index, including the full value of special dividends but excluding regular dividends.
- Nifty 50 Total Return (TR): It will reflect the price performance of the index along with the full value of all dividends, both special and regular.
- Nifty 50 Net Total Return (NTR): This variant considers the price performance of the index, along with the net amount of all dividends (both special and regular) and gains from bonus issues after adjusting for withholding tax and capital gains tax.
Introducing these new indices is expected to benefit international investors considering investment in the Indian equity market. Additionally, these indices are positioned to serve as benchmarks for asset managers and reference indices for passive funds globally, including Exchange Traded Funds (ETFs), index funds, and structured products.
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On Tuesday, Nifty 50 and Sensex reached new closing highs driven by gains in banking and energy stocks. Nifty 50 rose by 168 points (0.81%), closing at 20,855.10, and Sensex gained 431 points (0.63%), ending at 69,296.14. This marked the sixth consecutive session of gains for both indices, boosted by strong macro numbers and BJP’s victory in three large states.
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Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
