In most trading days of a stock, are the fluctuations in the price of a security largely because of the buying and selling done by those participants who are included in the calculation of the free float market capitalisation of the company? In other words, all those participants minus the promoters, FIIs, long term investors?
There is huge amount of speculative activity that happens in stocks. So basically people who don’t own any stock will still come and bet on the direction of the stock within the particular day. So you can blame it on the intraday traders for fluctuation of the price during the day.
Yes, people who buy stock for delivery or sell stock from demat (ur free float) also impact the stock price.