NSE Launches NIFTY50 Net Total Return (NTR) Index

NSE Indices Ltd., a subsidiary of NSE, has rolled out a new variant of the Nifty 50 index called the Nifty 50 Net Total Return (NTR) Index. This fresh index is designed to assess how well the Nifty 50 is doing by considering reinvested cash dividends and gains from bonus issues, while also considering relevant taxes. Nifty 50 Net Total Return Index will be calculated in both Indian Rupee and US Dollar. Each currency has three unique versions of the index.

Nifty 50 Net Total Return (INR):

This version, measured in Indian Rupees, shows how well the Nifty 50 index is doing. It goes beyond the usual numbers by considering all the extra earnings like dividends and bonus gains. Plus, before crunching the final figures, it takes out taxes such as withholding and capital gains taxes. This way, you get a more accurate picture of how things are going.

Nifty 50 Net Total Return (USD):

In US Dollars, this version accurately portrays the performance of the Nifty 50 index like the INR variant.

There will be three distinct variations for both INR and USD.

Nifty 50 Price Return (PR):

This variant showcases the index's price performance, encompassing the complete value of special dividends while excluding regular dividends.

Nifty 50 Total Return (TR):

It will reflect how well the index is doing in terms of both its price changes and all the dividends it pays out, including both regular and special dividends.

Nifty 50 Net Total Return (NTR):

This version considers the index's price changes, adds up all dividends (regular and special), and accounts for bonus gains. After factoring in withholding and capital gains taxes, it will give a clear picture of the overall performance.

These new indices are expected to benefit international investors interested in the Indian stock market. These indices will serve as benchmarks for asset managers and reference points for global passive funds like ETFs and index funds, making it easier for everyone to understand and navigate the market.

Market Performance

The Nifty 50, representing India's top 50 companies, has been on a winning streak, hitting a new all-time high in today's trade. It's approaching the significant 21,000 mark, just 41.35 points away from this milestone. This surge started in December, boosted by investor confidence after India's impressive 7.6% economic growth in the September quarter, beating analyst expectations. This performance solidifies India as the fastest-growing large economy, outpacing China, which reported 4.9% growth in July–September 2023.

Friday's rally also pushed the market capitalization of NSE-listed companies over the $4 trillion mark for the first time. The positive momentum continued into the following trading sessions after the ruling party, BJP, won decisively in three out of four critical state elections, instilling confidence in political stability for 2024.

In Monday and Tuesday's trade, the Nifty 50 rose by 2.07% and 0.81%. In today's session, it reached a new peak of 20,958.65 points, gaining 0.50%. So far this month, the index has gained 783.35 points, or 3.90%. Moreover, it has risen by 20.75% from its 2023 low of 17,359. This year has been remarkable for the Nifty 50, surpassing the 19,000 level in June and reaching the 20,000 mark in September.