AMFI rejig: IKIO Lighting, RVNL, Bank of Maharashtra shares among midcap contenders; JSPL, PNB may join largecap category

Jindal Steel & Power Ltd, Punjab National Bank, IDBI Bank, Canara Bank and TVS Motor are among seven stocks that could move to largecap category in the AMFI's semi-annual categorisation due in next few days. Mankind Pharma may also join the list, Nuvama Institutional Equities suggested in a note. FNS E-Commerce (Nykaa), JSW Energy, Tata Elxsi and Info Edge would be stocks that may exit largecap category, Abhilash Pagaria, Head of Nuvama Alternative & Quantitative Research suggested in a note.

To be sure, the change in categorisation does not lead to incremental inflows or outflow. The active mutual fund managers keep an eye on the list while taking fresh or modifying positions in stocks in different category of schemes. The list will be valid from August to January 2024.

Punjab & Sindh Bank, Carborundum Universal, Bank of Maharashtra, FACT, Jindal Stainless, Rail Vilas Nigam, Bharat Dynamics and IIFL Finance may move from smallcap to midcap category, as of Nuvama. Piramal Pharma, Tata Teleservices, Fine Organic, Nippon Life, Clean Science, Gillette India, Blue Dart and Dr Lal Pathlabs can be among stocks that may be transferred to smallcap category from midcap category.

Stocks namely IKIO Lighting, Avalon Technologies, Radiant Cash Management, Global Surfaces and Sah Polymers could be among new entrants to the midcap category.

Meanwhile, the record date for HDFC-HDFC Bank is July 13. If AMFI pre-emptively considers the same, Trent could be saved from migrating to midcap from largecap and likewise Emami will continue to be a part of midcap category.

Nuvama noted that AMFI has in the past made changes with a lag. But HDFC-HDFC Bank being the biggest merger, it should ideally be considering it in advance.

"This list is referred (not mirrored) by active mutual fund managers in India," Nuvama said. With the cut-off date behind us, the official list should mirror the expectations, it noted while suggesting that AMFI may announce the Semi-Annual stock categorisation in a day or two.

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