Market Updates: The new market categorization list for H1 CY24 was released by the Association of Mutual Funds of India (AMFI) on January 4. The largecap threshold increased from Rs 49,700 crore in June 2023 to Rs 67,000 crore as of right now. The midcap cut-off has increased from Rs 17,400 crore to Rs 22,000 crore, according to Nuvama Institutional Equities.
Jio Financial Services is now formally classified as a largecap stock thanks to the modifications, while newly listed companies Tata Technologies, IREDA, and JSW Infrastructure have moved up to the midcap list due to their recent advances.
According to AMFI, market capitalization rankings for largecap, midcap, and smallcap corporations range from 101 to 250, with 251 being the highest ranking.
The list will be effective from February to July 2024.
Active equities mutual fund managers are the primary source of referrals for the AMFI stock categorization list. Although not always instantaneous, categorization aids in flows. The visibility of the companies rises as they progress up the classification ladder from lower to higher, i.e., smallcap to midcap and midcap to largecap, according to Abhilash Pagaria, Head, Nuvama Alternative & Quantitative Research.
Smallcap to midcaps and midcaps to largecaps
Companies that have transitioned from midcap to largecap include PFC, IRFC, Macrotech Developers, Polycab India, REC, Shriram Finance, Union Bank, and Indian Overseas Bank. This shift has been facilitated by the surge in these equities over the last six months. Mazgaon Dock, Suzlon Energy, Lloyds Metals, SJVN, Kalyan Jewellers, KEI Industries, Credit Access Grameen, Exide Industries, Nippon Asset Management, Ajanta Pharma, Narayana Hrudalaya, and Glenmark Pharma are among the stocks that went from smallcap to midcap status.
Largecaps to midcaps and midcaps to smallcaps
Certain equities have been “downgraded” since they were not included in the recent record-breaking run of the market. UPL, Adani Wilmar, PI Industries, IRCTC, Bosch, Tube Investments, Samvardhana Motherson, and Hero Motocorp are the largecap stocks that are currently classified as midcaps. Pfizer, Aditya Birla Fashion, Bharat Dynamics, Bata India, Vinati Organics, Atul, Navin Fluorine, Sumitomo Chemicals, Whirlpool India, Atul, Aditya Exports, Bharat Dynamics, Aarti Industries, Vinati Organics, Crompton Greaves Consumer Electricals, and Carborundrum Universal have all been demoted from midcap positions to smallcap positions.
In the meantime, the other recently listed companies were the new additions to the smallcap list.
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