What is this free float ?
It simply means from tomorrow, the weightage of any scrip in nifty index will be proportional tothe public shareholding in the scrip. Currently weightage is proportional to public + promoter shareholding.
What does this mean to you and me as traders?
It means that there will be slight change in the scripts that we use to track nifty.
Highest weightage will remain with the Sultan, Reliance ( good news for RIL stock fans).
INFOSYS,L&T, ICICIBANK and HDFC will have more weightage.
ONGC will lose its position as index biggie.
What is the effect of this change on NIFTY ?
There will be no change in the index value because of change in weightage system. Based on today's closing prices, the division will be adjusted accordingly
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