Tata Motors DVR, Future Retail DVR rally up to 11% on likely inclusion in Nifty

NEW DELHI: Shares with differential voting rights (DVRs) such as Tata Motors DVR and Future Retail DVR rallied up to 11 per cent in trade on Thursday, on reports that DVRs are likely to be included in the benchmark index Nifty of the National Stock Exchange (NSE) from June, ET reported quoting sources.

Reacting to the news Tata Motors DVR surged as much as 3.9 per cent, while Future Retail DVR rose as much as 11.02 per cent in trade today.

Tata Motors ended the day in green, up 1.37 per cent or Rs 4.70 at Rs 348.9. Future Retail DVR ended the day 8.57 per cent or Rs 4.20 at Rs 53.20.

Usually, DVR shares trade at 30-40% discount to the normal shares listed on the exchanges with full voting rights.

Last month, the BSE had said DVR shares of companies which were constituents of the 30-share benchmark index S&P BSE Sensex too will be part of the index. Now, on the NSE, companies that are constituents of Nifty will see their DVRs being included in the index, ET reported.

The finance ministry was in favour of such a move as it would help public sector banks to raise capital from the stock market, said a regulatory official. Replying to an email query, the NSE said it was premature for them to comment on the matter.

The finance ministry was in favour of such a move as it would help public sector banks to raise capital from the stock market, said a regulatory official.

Replying to an email query, the NSE said it was premature for them to comment on the matter.