Following a reshuffle by the Association of Mutual Funds in India (AMFI), Jio Financial has entered the largecap segment while three other debutants – Tata Tech, JSW Infra and IREDA have sauntered into the midcap category.
The largecap threshold now stands at Rs 67,000 crore, up from Rs 49,700 crore in June 2023. The midcap cut-off has risen to Rs 22,000 crore, compared to Rs 17,400 crore previously.
The changes will come into effect in February and will be valid till July this year when AMFI will do another reshuffle.
Stocks that have been upgraded from midcap to largecap
Jio Financial is a new entry in the largecap basket. Eight stocks that have been promoted from midcap to largecap are Power Finance Corporation, IRFC, Macrotech Developers, Polycab India, REC, Shriram Finance, Union Bank and IOB.
Stocks that have been upgraded from smallcap to midcap
Stocks that have been upgraded from smallcap to midcap are Mazagon Dock, Suzlon Energy, Lloyds Metals, SJVN, Kalyan Jewellers, KEI Industries, Credit Access Grameen, Exide Industries, Nippon Life, Ajanta Pharma, Narayana Hrudaya and Glenmark Pharma.
AMFI Stock Categorisation Impact
The AMFI stock categorization list is mainly referred to by active equity mutual fund managers. It may not necessarily lead to inflows or outflows as the decision of active fund managers also depends on fundamental and other non-quantitative factors.
“The recategorization helps but not necessarily immediately in terms of flows. As the stocks move up from the lower categorization to higher (eg- Small-cap to Midcap and Midcap to Large cap), it leads to more visibility for stocks and thus the fund managers can look to further analyse the names and add as per their rational and scheme mandate,” said Abhilash Pagaria of Nuvama Alternative & Quantitative Research.
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