Suzlon Energy, Mazagon Dock & Kalyan Jewellers shares are likely midcap entrants in AMFI Jan rejig

Shares of Suzlon Energy Ltd, Mazagon Dock Shipbuilders Ltd, SJVN Ltd and Kalyan Jewellers could enter AMFI's midcap category in the January rejig, Nuvama Institutional Equities said on Monday. Adani Wilmar, IRCTC Ltd and UPL Ltd, among others, on the other hand, are seen shifting to midcap category from the largecap pack.

AMFI would announce changes in the first week of January and they would be applicable from February to July next year.

Sebi had in October 2017 sought well-defined classification of large cap, midcap and small cap stocks, in a bid to ensure uniformity in respect of the investment universe for equity mutual fund schemes. The change in categorisation, Nuvama Institutional Equities said, does not result in incremental inflows or outflow. The active mutual fund managers, however, keep an eye on the list as they take fresh positions in stocks in different category of schemes.

Mazagon Dock, Suzlon Energy, Lloyds Metal, SJVN, Kalyan Jewellers,  CreditAccess Grameen, KEI Industries, Emami and Exide Industries are some of smallcap tocks that can enter midcap categories, Nuvama said.

Ajanta Pharma, Glenmark Pharma, Nippon Life,  Fivestar Business Finance and recent stock debutant JSW Infra may also be categorised as 'midcaps', the Nuvama report suggested.

Shares that can move from midcap to smallcap category included Rajesh Exports, Aarti Industries, Pfizer, Vinati Organics, Crompton Greaves, Bharat Dynamics, Atul, Navin Fluoro, Whirlpool and Laurus Labs, among others.

Sumitomo Chemicals,  Aditya Birla Fashion, Bata India and Kajaria Ceramics are other midcap stocks that could be categorised as 'smallcaps' in AMFI's January rejig.

Nuvama said the re-categorisation helps but not necessarily immediately in term of flows. "As the stocks move up from lower categorization 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." it said.

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