Stocks That May Enter Large And Mid-Cap Categories In Next AMFI Rejig
A total of nine stocks could be classified as 'large-cap', while 14 may be reclassified as 'mid-cap' from 'small-cap'.
The market rally in the second half of 2023 has made a group of stocks eligible for reclassification by the Association of Mutual Funds in India in the first week of January.
A total of nine stocks could be classified as large caps, while 14 may be move to mid-cap category from small caps on the basis of the growth in their market capitalisation over the six-month period, according to NDTV Profit Research.
The daily average market cap of these companies rose enough to qualify for reclassification to fit the AMFI criteria, as per Bloomberg data.
The Securities and Exchange Board of India classifies companies into large-, mid- and small-cap categories on the basis of average full market capitalisation over a six-month period.
Those that rank among the top 100 get classified as large caps, and the 150 that follow are termed as mid caps. The remaining are classified as small caps.
The minimum average market cap among the top 100 stocks currently stands at Rs 79,307 crore. That compares with Rs 49,686.9 crore average market cap of stocks classified as large caps in the previous six-month period.
Based on the cut-off of Rs 79,307 crore, the stocks that have joined the rank of top 100 include:
Jio Financial Services Ltd. recorded an average market cap of over Rs 1.74 lakh crore since listing, after the demerger with Reliance Industries Ltd.
Indian Railway Finance Corp. and Power Finance Corp.'s market caps grew over twice their initial value at the beginning of the six-month period, rising by 157% and 141%, respectively.
Macrotech Developers Ltd. (Lodha) was earlier downgraded from being a 'large-cap' in H2 CY22 to 'mid-cap' in H1 CY23. Since then, the stock has rallied 30.3%, making it eligible for a potential re-addition to the category of 'large-cap'.
Among the stocks eligible for inclusion in the 'large-cap' category, seven of nine belong to the financial services sector. At present, 13 out of 100 stocks classified as 'large-caps' come from this sector.
Among the 14 companies with an average market cap eligible for inclusion in 'mid-cap' classification, three are newly listed companies.
Tata Technologies Ltd., which was listed on Nov. 30, recorded an average market cap of Rs 59,261.1 crore, which is above that of the smallest 'large-cap' company over the previous six-month period.
JSW Infrastructure Ltd. and Lloyds Metals and Energy Ltd. grew by 65.9% and 10.2%, respectively, since their listings.
Emami Ltd., which had been downgraded from 'mid-cap' to 'small-cap' during the earlier reclassification, grew by 18% over the second half of the calendar year, making it eligible for a possible upgrade back to the 'mid-cap' category.
