AMFI has added Adani Total Gas, NMDC, Apollo Hospitals Enterprises, Cholamandalam Investment and Finance, Steel Authority of India, Bank of Baroda, and Honeywell Automation India to the largecap list.
Adani Total Gas, SAIL, and NMDC are some of the newly crowned large-cap stocks on Dalal Street. The Association of Mutual Funds in India (AMFI), in its semi-annual review, has upgraded 7 midcaps stocks to large caps while reclassifying seven others out of the large-cap pocket into midcap. The January-June reclassification by AMFI is on expected lines as predicted by brokerage firms. AMFI reviews the market capitalization of all listed companies semi-annually and reclassifies them accordingly. Based on the revised list released by AMFI, fund houses rejig their portfolios to match the fresh classifications.
Largecap category rejig
AMFI has added Adani Total Gas, NMDC, Apollo Hospitals Enterprises, Cholamandalam Investment and Finance, Steel Authority of India, Bank of Baroda, and Honeywell Automation India to the large-cap list now. The market capitalization cut-off for large-cap stocks has now increased in the latest rejig to Rs 37,746 crore from Rs 28,897 crore during the previous reclassification.
Midcap stock changes
Freshly listed India Railways Finance Corporation, Macrotech Developers, Sona BLW Precision Forgings, and Indigo Paints have been listed as midcaps by AMFI. Meanwhile, making a move up, Tata Elxsi, APL Apollo Tubes, Kajaria Ceramics, Bank of Maharashtra, Apollo Tyres, Indian Bank, Alkyl Amines Chemicals, Linde India, Affle (India), Blue Dart Express, and Vaibhav Goyal have been upgraded from small-caps to the midcap category.
On the other hand, Metropolis Healthcare, Prestige Estate projects, ITI, Mahanagar Gas, Procter & Gamble Health, Credit Access Grameen, Central Bank of India, SJVN, Akzo Nobel, IIFL Wealth Management, and Motilal Oswal Financial Services are some of the stocks that have been reclassified as small-caps from midcaps earlier.
Similar to the market capitalization cut off for large caps, the same has also moved higher for midcap stocks. The least average market capitalization of a midcap stock is now Rs 11,819 crore, against 8,389 crore during the December-January reclassification. Mutual fund houses get one month to align their portfolios according to the fresh classification announced by AMFI. The latest SEBI circular on multi cap funds requires such funds to hold at least 25% of midcaps, large-caps, and small-caps, in their portfolio.