AMFI rejig: IRFC, Polycab and Jio Financial Services among others may enter large-cap category, says Nuvama

Polycab, Macrotech Developers, Shriram Finance, Power Finance Corporation, Indian Railway Finance Corporation (IRFC), CG Power, Union Bank, Zydus Lifesciences, and Jio Financial Services are expected to enter the large-cap category in the upcoming semi-annual index categorisation for H1 CY24 by the Association of Mutual Funds in India (AMFI), according to Nuvama Institutional Equities. 

The Nuvama report further says that Mazagaon Dock, Suzlon Energy, Lloyds Metal, SJVN, KEI Industries, Exide Industries, CreditAccess Grameen, Glenmark Pharma, Emami, Narayan Hrudayalaya, and newly-listed JSW Infra will be the mid-cap contenders. 

On the other hand, stocks such as UPL, Adani Wilmar, Indian Railway Catering and Tourism Corporation (IRCTC), PI Industries, Bosch, Tube Investments, Hero MotoCorp, and Canara Bank may slip to the midcap from the large cap category. 

Meanwhile, Crompton Greaves Consumer Electricals, Whirlpool, Laurus Labs, and Atul Ltd. may slip from the midcap category to the smallcap category.  

As per the circular released by the market regulator Securities and Exchange Board of India (Sebi) in October 2017, the listed stocks must be strictly categorised into baskets with a well-defined classification of large-cap, mid-cap, and small-cap stocks. 

This was to ensure uniformity with respect to the investment universe for equity mutual fund schemes. Sebi has also stipulated that AMFI shall prepare the list of stocks in this regard. Accordingly, AMFI, in consultation with SEBI and stock exchanges, prepares a list of stocks with categorisation based on the market capitalisation provided by BSE, NSE, and MSEI. 

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