Free Float Market Capitalization

Free Float Market Capitalisation is the market value of a company calculated using only the shares that are freely available for trading in the open market — excluding shares held by promoters, governments, and strategic investors that are locked in and not available for public trading. It is calculated as: Free Float Market Cap = Share Price × Free Float Shares. Most major global and Indian indices — including the Nifty 50 and BSE Sensex — use free float market cap weighting rather than full market cap weighting, as it more accurately reflects the investable universe available to market participants. A company with a low public float has a lower free float market cap relative to its total market cap, and will have lower index weight despite potentially large total size.