Tech, new-age IPOs may rule AMFI list; Zomato, Minda Tree among 13 probable stocks to make it to largecap category: Report

Tech and new-age IPOs are likely to rule the AMFI (Association of Mutual Funds in India) market cap categorisation, as per a research report published by Edelweiss Alternative Research.

The AMFI is a nodal association of mutual funds across India. The mutual funds nodal association will consider the market cap cut-off date on December 31, 2021. The official list will be released any day between January 4 and January 7, 2022, while the fresh list will be effective from February 1, 2022, said the report.  

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The AMFI Stock Categorization list is mainly referred to the active equity mutual fund managers.

Minda Tree, SRF, Tata Power company, Mphasis, Godrej Properties, Bharat Electronics, JSW Energy and Macrotech Developers are probable names to take the leap from the mid-cap category to the large-cap category, as per the same research.

Source: Edelweiss Research Report

Among the new recently listed companies such as Zomato, FSN Ecommerce Ventures, One 97 Communications and PB Fintech can also be put into the large-cap category.  
  
As per Edelweiss, among the major probable candidates to be downgraded from large-cap to mid-cap are Yes Bank, Honeywell Automation, Punjab National Bank, Biocon, Colgate-Palmolive, Bank of Baroda, Lupin, Aurobindo Pharma, NMDC, P&G Health, Cholamandalam Invest & Finance, Bosch and Bandhan Bank.  

The research, however, says it is not necessary that the active equity fund manager may choose to add/remove or increase/reduce weights in the stocks from their respective portfolios, depending upon the fundamental and non-quantitative rational.