How Nifty50 is calculated ?
Nifty Calculation: Nifty is calculated through the technique of free-float market capitalization. They contain the total market capitalization of the organizations weighted via their effect at the index, so the larger shares could make more of a difference to the index compared to a smaller marketplace cap organization. it will get the index bar in their modern values of your NEST trading platform. Here NEST trader approach means it is an effective advanced software in share trading in India. Marketplace Capitalization = Shares outstanding * Market Price Per Share Free Float Market Capitalization = Shares outstanding * Price * IWF (Investible Weight Factor) Index value = Current Market Value / Base Market Capital * Base Index Value Understanding Free-Float Market Capitalization Free float shares are those large stocks of a company that are traded within the open market for trading . Not all stocks issued by the company are free float.