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The unprecedented rally in the equity market in last six months has pushed up the threshold of large-cap stock classification of mutual funds by 37 per cent to ₹67,000 crore against ₹49,700 crore logged in last June.
Similarly, mid-cap classification limit has increased by 26 per cent to ₹22,000 crore against ₹17,400 crore, according to an analysis by Nuvama Institutional Equities.
The Association of Mutual Funds of India released the new half-year stock classification list on Thursday. As per SEBI norms, large-cap companies are those ranked from 1-100 in market capitalisation, mid-cap companies are ranked from 101-250 and small-cap companies as those ranked from 251 onwards.
Abhilash Pagaria, Head, Nuvama Alternative & Quantitative Research, said, the AMFI stock categorisation list is mainly referred by active equity mutual fund managers and it helps in term attracting inflows, though in a gradual manner.
As the stocks move up from lower categorisation to higher, it gains visibility and attracts fresh investment, he said.
Jio Financial Services, the recently spun-off business of Reliance Industries, has made its debut in the large-cap category along with Power Finance Corporation, Indian Railway Finance Corp, Macrotech Developers, Polycab India, REC, Shriram Finance, Union Bank of India and Indian Overseas Bank.
The debutant Jio Financial Services registered a market cap of ₹1.46-lakh crore as of December-end.
Among the new listed entities Tata Technologies, IREDA and JSW Infrastructure have made it to the mid-cap list after their recent gains.
Stocks that were upgraded from small- to mid-cap include 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.
Downgrades
Some of the stocks that were downgraded from large to mid-cap stocks include Hero Motocorp, Bosch, UPL, Adani Wilmar, PI Industries, IRCTC, Tube Investments and Samvardhana Motherson.
The others who were pushed down to small-cap from mid-cap includes Rajesh Exports, Pfizer, Aarti Industries, Vinati Organics, Crompton Greaves Consumer Electricals, Whirlpool India, Atul, Navin Fluorine, Sumitomo Chemicals, Laurus Labs, Aditya Birla Fashion, Bharat Dynamics, Bata India, Kajaria Ceramics and Carborundum Universal.
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