Vedanta shares set to trade ex-dividend on Tuesday; catch all details here

Vedanta Ltd (VEDL) shares are scheduled to trade ex-dividend on Tuesday, September 10. On Monday, the stock rose by Re 0.40 - or 0.1 per cent - to end at Rs 460.3 apiece on BSE.

Earlier, the inning major announced an interim dividend of Rs 20 per equity share for eligible shareholders. 

What happens when a stock trades ex-dividend?

When a stock trades ex-dividend, it essentially means that the stock is priced without including the upcoming dividend. In other words, as the market opens on the ex-date, the price of the stock is adjusted by excluding the dividend being paid to eligible holders, which means that new buyers on or after the ex-dividend date are not eligible to receive the dividend.

Why does the ex-date matter? 

The ex-dividend date determines if a buyer will receive the dividend. Simply put, investors must purchase the stock before the ex-dividend date to qualify for the dividend.

How Dalal Street fared on September 9

Domestic equity benchmarks eked out gains to the tune of around half a per cent on Monday following three straight sessions of losses, with the Sensex rising 375.6 points to end at 81,559.5 and the Nifty50 gaining 84.3 points to 24,936.4.

While buying interest in financial services and FMCG shares aided the upmove in the main indices, selling pressure in spaces like IT and energy limited the upside. Read more on the September 9 session on Dalal Street | Stocks to track for next session

ALSO READ: Corporate Action | From dividend to bonus to split to buyback, stocks to trade ex-date this week

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