The benchmark indices NIFTY 50 and SENSEX follow which methodology for calculating the weightage of constituent stocks?

Both NIFTY 50 (managed by NSE Indices) and SENSEX (managed by BSE) use a free-float market capitalization–weighted methodology for index calculation. • Free-float market capitalization = Share price × Number of shares available for public trading (excluding promoter holdings, government holdings, ESOPs, etc.). • This ensures that only shares actually available for trading influence the index weight, making the indices more reflective of the market. • Stocks with larger free-float market capitalization carry higher weightage in the index.