Select buzzing stocks of Dalal Street including Hero MotoCorp, BHEL, NHPC, Bharat Dynamics, IRB Infra, Hudco, Nalco and Tata Investment Corporation may see a upgrade in the forthcoming AMFI re-categorization, while some names like SRF, Marico, Sun TV, Ramco Cements may be downgraded, suggest notes from IIFL Securities and Nuvama Institutional Equities.
The Association of Mutual Funds of India (AMFI) classifies largecap companies as those ranked from 1-100 in market capitalization, midcap companies from 101-250 and smallcap companies as those ranked from 251 onwards.
Companies including Hero MotoCorp, Zydus Life Science, JSW Energy, NHPC, Bharat Heavy Electricals Ltd (BHEL), Samvardhana Motherson International and Bosch may be upgraded to largecap category from midcap. However, Berger Paints, SBI Cards, Marico, SRF, ICICI Lombard GIC, Polycab India and ICICI Prudential Life Insurance may be relegated to midcaps from the largecaps.
Midcap category may see additions like Hudco, IRB Infra, Bharat Dynamics, MRPL, BSE, Global Health, Hitachi Energy, NLC India, Cochin Shipyard, Tata Investment Corporation, National Aluminium, Hindustan Copper, Motilal Oswal Financial Services, ITI, Apar Industries, Godrej Industries and Blue Star from smallcap categories with new additions like Bharti Hexacom and Go Digit General Insurance.
On a contrary, names like Nayanaya Hrudayalaya, Sun TV Network, Bayer Cropsciences, Vedant Fashions, Grindwell Norton, Timken India, Sundaram Fasteners, Hatsun Agro Products, Kansai Nerolac, SKF India, CreditAccess Grameen, Relaxo Footwears, Ramco Cements, Devyani International, IIFL Finance, Piramal Enterprises and Zee Entertainment may be pushed to smallcap category.
The current cut-off period spans from January 1, 2024, to June 30, 2024, with the announcement expected in the first week of July, 2024. The categorisation will take effect from August 1, 2024, said the note from Nuvama Institutional Equities.
The change in categorization doesn’t lead to incremental inflows or outflow. The active mutual fund managers keep an eye on the list while taking fresh/modifying position in stocks in different category of schemes, it said.
The re-classified list of large, mid and smallcaps will be released by AMFI by the first week of Jul 2024. Equity oriented market cap classification focused schemes will have to re-align their holdings within one month of announcement based on discretion, said IIFL Securities. However re-positioning will be purely discretion based, it said.
Recently listed companies including Jyoti CNC Automation, TBO Tek, Aadhar Housing, Indegene, Juniper Hotels, Jana Small Finance Bank, Entero Healthcare, Gopal Snack, Apeejay Surrender Park Hotels, JNK India, Medi Assist, Exicom Telesystems, BLS E-Services, Rashi Peripherals, Epack Durables, Popular Vehicles, Capital Small Finance Bank, RK Swamy, GPT Healthcare, Platinum Industries, Krystal Intergrated, Mukka Protiens, Vibhor Steel and Nova Agritech may be new additions to the smallcap category.