NSE adopts Free-Float market Capitalisation
we expect volatility to rise on account of derivative contract expiry on
Thursday. On Friday, 26th June 2009,the NSE will adopt the
free-float market capitalisation method to calculate its benchmark
indices from the existing full-float method which may result in fund
managers reshuffling their index funds leading to volatility.
Stocks which are expected to see its
weightages coming down are ONGC, NTPC, Sail, Power Grid, Nalco
Bharti Airtel, Reliance Communications, TCS, DLF and Wipro due to
lower free float. However, Infosys, ICICI Bank, L&T, HDFC and HDFC
Bank will stand to gain from this change as their weights will
almost double from their current levels due to higher free float.
Another omportant event to watch globally is the US Fed's two-day
monetary policy meeting on 23rd and 24th June 2009. While the Fed
meet is not expected to result in any immediate changes to its loose
monetary policy the market will examine the post-meeting statement
for clues as to how long the interest rates will remain at the
current near zero.