The recent market capitalisation review of stocks by AMFI shows that 6 mid-cap stocks have been now reclassified as large cap stocks. These 6 companies are Abbott India, Adani Green Energy, Alkem Laboratories, Cadila Healthcare, Indraprashtha Gas and MRF.
As per SEBI guidelines, this has been done on the basis of average market capitalization of listed companies during the six months ended June 30, 2020.
Moreover, two new companies - SBI Cards and Payment Services and Tata Consumer Products have also entered the large cap league. Please note that Tata Group has merged its consumer products businesses (stocks in large and midcap space) to form Tata Consumer products.
Meanwhile, 7 companies that were listed as large cap stocks have now been classified as mid cap stocks. ABB India, ACC, Kansai Nerolac Paints, Oracle Financial Services Software, Power Finance Corporation, REC and Zee Entertainment Enterprises are the 7 stocks that saw a drop in their market capitalisation during Jan-Jun this year. Consequently, they were re-categorised as midcaps as per SEBI definition.
Similarly, 8 stocks transitioned from small cap stocks to mid cap stocks and 5 stocks from mid cap to small cap.
Now, mutual funds will have to rebalance their portfolio based on the new categorisation.
In October 2017, SEBI recommended uniform definitions for large cap, mid cap and small cap companies to ensure a standardised investment universe across all fund houses.
As per SEBI definition, large cap companies are the first 100 companies in terms of full market capitalization, while companies with market capitalisation from 101 to 250 rank are categorised as mid caps. Small cap companies have market capitalisation beyond the 250th rank.
Accordingly, AMFI in consultation with SEBI and the exchanges (NSE and BSE) publishes a list of stocks on a half-yearly basis. After the release of this list, fund houses have a month’s time to rebalance their portfolio.
Generally, there is a slight churn in portfolios after AMFI publishes the new list.
In the new list, AMFI has identified 5,004 stocks as of June 2020.
Click here to see the complete list.
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New entrants in large cap |
Moved from large cap to mid cap |
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Abbott India |
ABB India |
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Adani Green Energy |
ACC |
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Alkem Laboratories |
Kansai Nerolac Paints |
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Cadila Healthcare |
Oracle Financial Services Software |
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Indraprashtha Gas |
Power Finance Corporation |
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M.R.F. |
REC |
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Sbi Cards And Payment Services |
Zee Entertainment Enterprises |
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Tata Consumer Products |
|
|
Upgraded to mid cap from small cap |
Moved from mid cap to small cap |
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Central Bank Of India |
Edelweiss Financial Services Ltd |
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Escorts |
Eih |
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Jm Financial |
Future Lifestyle Fashions |
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Jubilant Life Sciences |
PNB Housing Finance Limited |
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Metropolis Healthcare |
Ujjivan Small Finance Bank Lim |
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Ruchi Soya Industries |
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TTK Prestige |
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Tube Investments Of India |
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