The Association of Mutual Funds in India (AMFI) releases a semi-annual categorization of stocks based on market capitalization. The list released in January 2023 considers data from July 2022 to December 2022.
According to the Securities and Exchange Board of India’s (SEBI) circular in October 2017, listed stocks must be strictly categorised into baskets with a well-defined classification of large-cap, mid-cap and small-cap stocks. Accordingly, AMFI in consultation with Sebi and stock exchanges prepares the list of stocks with categorisation based on the market capitalisation provided by the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and Metropolitan Stock Exchange of India Limited (MSEI).
AMFI’s cut-off for large-cap companies is at ₹ 48,900 crores and above and for mid-cap companies is at ₹ 16,800 and above. The mutual fund body has considered the top 100 companies based on their 6-month average market capitalization as large-caps, those from 101st to 250th are midcaps, while the remaining are small-caps.
This stock categorization is mainly referred to by active equity mutual fund managers. Upgrades increase the visibility of the stocks and vice versa.
Stocks Classified As Large-Cap
As a part of this semi-annual classification by AMFI, two Tata Group Stocks, Tata Elxsi and Trent have been upgraded to large-cap, from the mid-cap basket earlier.
Stocks getting upgraded from mid-cap to large-cap are Varun Beverages, ABB India, Page Industries, PI Industries and Bosch.
Stocks Classified as Mid-Cap
UCO Bank, A PSU Bank has given multibagger returns of 145% in the past year and has been upgraded to mid-cap from small-cap earlier.
After a major slump in Paytm’s shares, it has been classified as mid-cap from large-cap earlier. A few other large-cap shares that are now being classified as mid-cap are Piramal Enterprises, Mphasis, Gland Pharma, Bandhan Bank and Muthoot Finance.
Stocks being upgraded from small-cap to mid-cap include Blue-Dart Express, Fine Organic Industries, Timken India, Apollo Tyres, Piramal Pharma, KPIT Tech and ZF Commercial.
Stocks classified as Small-cap
Stocks being downgraded from mid-cap to small-cap include Tanla Platforms, Chambal Fertilizers, IEX, NALCO, Godrej Industries, New India Assurance, ICICI Securities, and Aavas Financiers. Fresh listings are categorized under the small-cap category.
Written by Simran Bafna
Disclaimer
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