Reliance, Trent Lead 20 Stocks Going Ex-Date

Twenty stocks including Reliance Industries and Trent are set to trade ex-dividend or ex-bonus this week. For many retail investors, the immediate read is straightforward: buy before the record date to capture the payout, then watch the stock drop by the adjustment amount. That framing misses the real market mechanics. The ex-date adjustment is not a loss. It is a mechanical repricing that resets the cost base. The better question is whether the stock offers a compelling entry after the adjustment or whether liquidity and positioning create a trap for late buyers.

Ex-Date Mechanics for Reliance and Trent

The core arithmetic works the same across all 20 names. On the ex-date, the exchange recalculates the opening price by deducting the dividend amount or adjusting for the bonus ratio. A stock trading at Rs 2,500 that goes ex-dividend of Rs 50 opens at Rs 2,450 on the ex-date. The holder who bought before the record date receives the dividend in cash while the share price drops by the same amount – a net zero wealth effect before taxes. The trap appears when a trader buys solely for the dividend without checking the holding period, tax rate, or the stock’s post-adjustment liquidity. Both Reliance and Trent are large-cap names with deep books. Slippage risk is low for them. The real execution risk sits in smaller names on the same list where spreads can widen significantly during the first hour of ex-date trading.

Liquidity and Positioning After the Adjustment

The simple read treats the ex-date as a mechanical event. The better read treats it as a liquidity and positioning signal. Portfolio managers who do not want the dividend for tax reasons tend to sell before the record date. That creates a dip in the days leading up to the ex-date. After the adjustment, some of that selling pressure reverses. The reversal is not guaranteed. If the broader market is weak, the adjustment can compound losses. A strong market can absorb the adjustment quickly. The key metric to watch is not the dividend yield in isolation but the stock’s relative strength in the week before the ex-date. If Reliance or Trent have been underperforming the Nifty 50, the ex-date adjustment may accelerate the decline. If they have been tracking or outperforming, the adjustment is typically a one-day technical reset with no lasting effect.

Using Alpha Score to Gauge Entries

AlphaScala’s proprietary metrics offer a framework for evaluating whether a post-ex-date position makes sense. HDFC Bank (HDB), with an Alpha Score of 38/100 (Mixed) in the Financial Services sector, shows that a high-dividend name can still carry execution risk if the score points to mixed fundamentals. Infosys (INFY) carries an Alpha Score of 57/100 (Moderate) in Technology. That indicates a more balanced reward profile. Wipro (WIT), also Technology, scores 46/100 (Mixed). For traders considering a position in stocks turning ex-date, cross-referencing the Alpha Score with the ex-date adjustment helps separate mechanical trades from genuine investable setups. A stock with a Moderate or higher Alpha Score and a relatively small adjustment offers a cleaner entry. A stock with a Mixed score and a large dividend or bonus adjustment carries the risk that the adjustment price does not reflect the underlying valuation.

The actual test comes in the session after the ex-date. If the stock closes above the adjusted open price, the market is signaling demand strong enough to absorb the mechanical drop. If it closes below, sellers are using the adjustment as an exit window. For Reliance and Trent, the liquidity depth means the first 30 minutes of trading on the ex-date will likely set the tone. Traders who want to enter should wait for the opening auction to settle and watch for a volume spike that confirms institutional participation. The same rule applies to the other 18 stocks on the list. For thinner names, the wait-and-confirm approach is even more critical.

For a broader look at dividend-related risk, see B&G Foods Dividend Cut Resets Risk-Reward for Holders. Track individual stock profiles on HDB stock page, INFY stock page, and WIT stock page.