Nifty 50 To Have 51 Securities , First time DVR added

By | February 23, 2016 3:30 pm

The National Stock Exchange on Monday announced a slew of changes to its Nifty50 index.

INDEX CHANGES: Aurobindo Pharma, Bharti Infratel To Be Included In Nifty50

INDEX CHANGES: Cairn India, Vedanta & PNB To Be Excluded From Nifty 50 From April 1

INDEX CHANGES: Eicher Motors, Tata Motors Dvr To Be Included In Nifty 50 From Apr 1

INDEX CHANGES: Nifty 50 Index To Have 51 Securities From April 1;No Name Change

Here are few  things to know about Tata Motors’ DVRs:

1) DVR stands for Differential Voting Right. Companies issue DVR shares to prevent any hostile takeover and dilution of voting rights.  A Tata Motors’ DVR share has 10 per cent voting right as compared to an ordinary Tata Motors’ share.

2) DVRs are suitable for retail investors who are not concerned with voting rights as they don’t intend to influence the decision-making of the management. The same company’s shares are available at a lesser price for the same fundamentals. Tata Motors’ DVRs are currently trading at over 20 per cent discount to Tata Motors shares.

3) Tata Motors’ DVRs fetch higher dividend as compared to ordinary shares of Tata Motors.

4) Tata Motors’ Differential Voting Rights shares will trade in the Nifty in addition to the company’s common shares. The Nifty will therefore have 51 stocks from April 1.
6) Nifty 51 will have both Tata Motors and Tata Motors DVR.

7 scrip addition in F&O

  • Cummins India
  • Granules India
  • Indo Count Ind
  • PC Jeweller
  • TATA Elexi
  • United Sprits

w.e.f 26th February 2016

Also 5 New Indies were launched by NSE

  • Nifty Mid Cap 150
  • Nifty Small Cap 250
  • Nifty Full Mid Cap 100
  • Nifty Small Cap 50
  • Nifty Full Small Cap 100
Category: Nifty Technical Analysis

About Bramesh

Bramesh Bhandari has been actively trading the Indian Stock Markets since over 15+ Years. His primary strategies are his interpretations and applications of Gann And Astro Methodologies developed over the past decade.

5 thoughts on “Nifty 50 To Have 51 Securities , First time DVR added

  1. Ram Nene

    Well Funny , I thought Nifty represent economy , whats the point of including same company in index 2 times ? Seems someone wants to prop Tata motors.

    Aaha vedanta excluded seems it will be in huge debt pressure in struggling economy , Sterlite should have been included in its place.

    Cairn should have been left as it is , But it got the vedanta fever.

    Seems PNB paid price of declaring wilful defaulter, if its kicked out bcas of NPA than what BoB ??

    Is PC jeweller and Indo count F&O stock ??????

    Sirji any idea do we get the logic of these exclusion and inclusion from SEBI or other authority responsible for these changes ?? would be very interesting logic :))

      1. Ram Nene

        Sirji Thanks, Well There is no logic explained for current exclusion ,inclusion . whatever is present is very general broad level explanation which is of almost no use :-))


Leave a Reply