Rail Vikas Nigam Ltd (RVNL), Indus Towers Ltd, Info Edge Ltd and ICICI Prudential Life Insurance Company Ltd are among midcap stocks that can be categorised as largecap in the AMFI's January list. Hyundai Motor India Ltd, NTPC Green Energy Ltd, Bajaj Housing Finance and Swiggy Ltd are among the recent stock debutants that may enter the largecap category. "Phenomenally, fuelled by the current market momentum, we now anticipate the AMFI large-cap cut-off to surge to Rs 1 lakh crore (up from Rs 84,000 crore in June 2024), while the midcap threshold is expected to soar to Rs 32,900 crore (against Rs 27,500 crore in June 2024). With the ongoing bull run, these thresholds continue to break records, setting new highs with each semi-annual reviews," said Nuvama Alternative & Quantitative Research in a note.
Polycab India, Cummins India and CG Power among three other stocks that can be included in AMFI's largecap categorisation.
The cut-off period spans from July 1, 2024, to December 31, 2024, with the announcement expected in the first week of January. The categorisation will take effect from February 1, 2025.
Adani Total Gas Ltd, NHPC Ltd, IDBI Bank Ltd, Bharat Heavy Electricals Ltd, Union Bank of India and Canara Bank Ltd are among largecap stocks at present that can be categorised as midcaps in the January rejig. Others included Mankind Pharma, IndusInd Bank, Jindal Steel & Power Ltd and Apollo Hospitals Enterprises are some other stocks that are potential midcap candidates.
Waaree Energies, Ola Electric Mobility, 360 One Wam, Vishal Mega Mart may enter midcap space while midcaps such as Bandhan Bank, Delhivery, ITI, Star Health, Motherson Sumi Wiring and Global Health may slip to smallcap category, Nuvama said.
The domestic brokerage was quick to note that the change in categorisation does not lead to incremental inflows or outflow.
"Recategorization helps, but not necessarily immediately in term of flows. As the stocks move up from lower categorisation to higher (say small-cap to mid-cap and midcap to large-cap), it increases their visibility. Fund managers typically further analyse such stocks and add them as per their rationale while complying with the scheme mandate," Nuvama noted.