The threshold limit for large-cap stocks in the semi-annual AMFI classification list is expected to fall 8 per cent to ₹91,600 crore from ₹1 lakh crore logged in December, despite the markets holding steady amid inflows into equity mutual fund schemes.

Similarly, the mid-cap limit will dip 8 per cent to ₹30,700 crore from ₹33,200 crore, according to a Nuvama Research report.

The listing of new shares and corporate action by top companies have partially pulled down the market capitalisation.

Based on their market capitalisation in the last six months, the AMFI categorises stocks into large- (top-100 stocks), mid- (101-250) and small-cap (251 onwards) stocks, and prepares the list every six months. SEBI has directed MFs to rebalance the portfolio of their funds based on this classification. The categorisation will take effect from August 1.

The bellwether Sensex has gained 5,920 points or 8 per cent to 84,059 points as of Friday, against 78,139 logged on December 31.

Similarly, the broader Nifty was also up 8 per cent at 25,638 points, against 23,645 points in the same period.

Stocks that will enter the large-cap space include Indian Hotels, Solar Industries India, Mazagon Dock Shipbuilders, Max Healthcare Institute, Shree Cements, Mankind Pharma, Apollo Hospitals Enterprises, Union Bank of India, Lupin, Jindal Steel & Power and Siemens Energy (new entrant).

The stocks that will be downgraded from large to mid-cap include Rail Vikas Nigam, Hero Motocorp, Indian Overseas Bank, Cummins India, Swiggy, Polycab India, Bosch, ICICI Prudential Life Insurance, Dabur India, JSW Energy and NTPC Green.

Among the potential mid-cap entrants are Godfrey Phillips India, KPR Mill, Narayana Hrudayalaya, Laurus Labs, Cholamandalam Fin Holdings, Authum Investment & Infra, Radico Khaitan, Global Health, MCX, Hexaware Tech (new listing), and ITC Hotels (new entrant).

Stocks that will slip to small-cap from mid-cap are Ola Electric Mobility, Punjab & Sind Bank,Aditya Birla Fashion and Retail, Indraprashtha Gas, Deepak Nitrite, Inventurus Knowledge Solutions, Syngene International, The New India Assurance, Apar Industries, Endurance Technologies, Tata Technologies and IRB Infrastructure Developers.

Saurabh Jain, Head, Equity Research - Fundamentals, SMC Global Securities, said large-cap stocks have corrected more sharply than mid-caps due to higher foreign institutional ownership, index-linked selling and stretched valuations in sectors such as IT and FMCG.

FIIs have aggressively sold large-cap names amid global risk aversion, while mid-caps have remained relatively resilient, supported by strong domestic and retail flows, he said.

However, with stronger fundamentals, better balance sheets, and attractive valuations post-correction, they are likely to rebound faster once macro conditions stabilise, he said.

Swapnil Aggarwal, Director, VSRK Capital said large-cap stocks have taken a bigger hit than mid-caps because their valuations were higher compared to their earnings growth potential.

On the flip side, he said, reasonably priced medium and small company stocks, which had more room to grow, have caught investors’ eye when things were shaky.

Published on June 27, 2025