Budget impact: Shares with DVRs underperform after DDT removal

The median loss for such securities after the Budget is 4.5 per cent, compared to a 2.1 per cent gain in the benchmark S&P BSE Sensex

Shares with differential voting rights (DVRs) have underperformed the broader market after the Budget on February 1.

The median loss for such securities after the Budget is 6.8 per cent, compared to a 1.8 per cent gain in the benchmark S&P BSE Sensex. 

Companies with DVRs include Tata Motors, Future Enterprises, Jain Irrigation Systems, and Stampede Capital. DVRs have also underperformed the ordinary shares of the companies, which are down 3.4 per cent on a median basis. Among key examples, the Jain Irrigation stock was down 2.8 per cent compared with an 8.6 per cent DVR decline. The Tata Motors DVR is