The decision of changing the market cap based index calculation to free float index is a good one considering the objectives of having a stock Index in any country.
The main objective if we define is to capture the overall market picture that is to say an ideal index would be one whose movement would be highly correlated to all possible portfolios in the market.
SO to have a correct picture of the MARKET the shares which are traded in actual market should be taken into consideration and not those which include shares held by promoters, strategic holders, government, etc.
Even though the change in process might hurt some stocks due to low weightage but it will give us the true picture and transparent results in future.
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