Sensex Total Returns Index

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Investors seldom take into consideration dividends. For most, they are simply cheques of measly amounts that they receive in the mail that do not really matter much. It is rise in share prices that matter to them. But as today’s chart of the day shows, dividends are definitely not something to be ignored. It pegs the Sensex ‘Total Returns Index’ against the BSE Sensex. The Total Returns Index, not known to many, also takes into consideration dividends announced by companies, and assumes them to be reinvested. While the BSE Sensex may be far from that magic 21,000 number, the Total Returns Index is well above that. Infact, it stood at a good 22,474 as per yesterday’s closing.

Data source: CMIE Prowess

Source: The 5 minute wrap-up