analysis · intermediate
Free-float market cap
Free-float market capitalisation values only shares available for public trading, excluding locked-in promoter blocks as defined by index rules.
Index providers compute free float using public shareholding concepts and their own methodologies.
A company with a large market cap but low free float may get a smaller index weight.
Nifty and Sensex weightings rely heavily on free-float rather than full market cap.
Changes in promoter holding or lock-ins can alter free float over time.
Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.