Stock Categorisation Amfi: Soon, some stocks may join midcap to midcap and largecap to midcap. It is believed that by 5 January 2021, the Association of Mutual Funds in India ie Amfi can issue such a new list. The shares of Yes Bank, Adani Enterprises, PI Industries, Hindustan Aeronautics and Jubilant Foodworks can become lardcap with midcap. Explain that in every half-year, Amphi decides the category of companies based on their market capitalization. Brokerage house ICICI Securities has given this information.
These can become lardcap from midcap
Yes Bank: More likely
Adani Enterprises: More Likely
PI Industries: More Likely
Hindustan Aeronautics: More Likely
Jubilant FoodWorks: Less Likely
Brokerage house ICICI Securities expects Yes Bank, Adani Enterprises, PI Industries and Hindustan Aeronautics to become largecaps. According to the brokerage, Jubilant FoodWorks seems unlikely to become large caps.
These can be made from largecap to midcap
MRF: less likely
NMDC: low probability
United Breweries: More Likely
Container Corporation: More likely
General Insurance: More Likely
Bank of Baroda: More likely
This can become a midcap with a smallcap
Laurus Labs, Indimart Intermesh, Naveen Fluorine, Dixon Technologies, Alok Industries, AstraZeneca Pharma, Deepak Nitrate, Bombay Burma and Suwen Pharma can be placed in the midcap category from Smallcap.
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Market cap limit increased
Every six months, based on market capitalization of the companies, Anfi decides their category. They are divided into largecap, midcap and smallcap categories. Mutual fund companies then invest in shares based on this category. ICICI Securities has said that in the second quarter of 2020, the market cap limit for largecap companies has been given at Rs 27,600 crore. For midcap companies, it has been increased to Rs 8,200 crore.
SEBI issued a circular in this regard on 6 October 2017. It said that within a month of the release of the new list of Anphy, mutual funds will have to change their portfolio.
Source: www.financialexpress.com