The NIFTY 50 Index represents about 62% of the free float market capitalization of the stocks listed on NSE as on September 30, 2022 . The total traded value of NIFTY 50 index constituents for the last six months ending September 2022 is approximately 41% of the traded value of all stocks on the NSE.
what is the meaning of this line?
Free float market capitalization means, shares available for trading. Nifty has 62% means, the 50 stocks in the index have more shares available for trading, all the other stocks’ shares are 48%. So Nifty is very liquid.
Lets say if the traded value of all the shares in 6 months is 1,00,000 crores, 41% or 41,000 crores value is from Nifty stocks, meaning people traded Nifty stocks more than the remaining stocks.
If we consider derivatives segment, I feel it will reach around 90 percent.
Am just guessing. No data to support the same.