Nifty 50 Net Total Return Index: NSE Indices launches new variant of Nifty 50 index

NSE’s index services subsidiary, NSE Indices Limited, on Tuesday launched a new variant of the Nifty 50 index named as the Nifty 50 Net Total Return (NTR) Index.

Nifty 50 Net Total Return index aims to measure the performance of the Nifty 50 index considering that the cash dividends and the gains from bonus issues are reinvested in the Nifty 50 index after applying relevant withholding tax and capital gains tax respectively. 

The Nifty 50 Net Total Return index will be computed in two currencies namely Indian Rupee (INR) and US Dollar (USD). The following are the two variants of the index launched:

1) Nifty 50 Net Total Return (INR)
2) Nifty 50 Net Total Return (USD)

With the launch of these new indices, below three variants of the Nifty 50 index will be available for each of the two currencies: 

1) Nifty 50 Price Return (PR): It will reflect the price performance of the index, plus the full value of special dividends but excludes the value of regular dividends.

2) Nifty 50 Total Return (TR): It will reflect the price performance of the index, plus the full value of all dividends (both special and regular).

3) Nifty 50 Net Total Return (NTR): ItT will reflect the price performance of the index, plus the net amount of all dividends (both special and regular) and gains from bonus issue after deducting withholding tax and capital gains tax respectively.

The new indices are expected to appeal to the international investors looking to invest in Indian equity market. They are expected to act as benchmarks for asset managers and as reference indices tracked by passive funds globally in the form of Exchange Traded Funds (ETFs), index funds and structured products.