New method to compute Nifty

New method to compute Nifty
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First Published: Tue, Mar 24 2009. 10 29 PM IST
Updated: Tue, Mar 24 2009. 10 29 PM IST
Mumbai: The National Stock Exchange’s S&P CNX Nifty index will be computed using the free-float market capitalization method from 26 June, mirroring rival Bombay Stock Exchange’s key Sensex inded.
The Nifty is currently calculated using full market capitalization-weighted methodology, the Mumbai-based bourse said. The free float for each firm in the index will be determined on the basis of the public shareholding, it said.
Strategic investments by firms and the government as well as shares held by founders through American and global depository receipts will be excluded from the free float. Foreign direct investments will also be excluded. The CNX 100 and the S&P CNX Defty will also use the same method.
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First Published: Tue, Mar 24 2009. 10 29 PM IST