AMFI rejig: Mankind Pharma, JSPL shares may enter largecap category; here are other likely changes

The Association of Mutual Funds in India (AMFI) will review its semi-annual index categorisation in the first week of July. According to Nuvama Institutional Equities, there are chances that stocks such as Jindal Steel and Power (JSPL), IDBI Bank, Punjab National Bank, Canara Bank, TVS Motor, Tube Investment, Zydus Lifesciences and newly-listed firm Mankind Pharma may enter into the largecap category. 

At present, these stocks are ranked anywhere between 101 and 126. Top 100 stocks based on six-month average market capitalisation are considered in the largecap category. 

An assessment by the brokerage further showed that FSN E-Commerce (Nykaa), JSW Energy, Tata Elxi, Indus Tower, Page Industries, Macrotech Developers, Info Edge and PI Industries may slip into the midcap category from largecap. These stocks are ranked somewhere between 80-100 spot at present. 

Abhilash Pagaria of Nuvama in a report said, “The change in categorisation doesn’t lead to incremental inflows or outflow. The active mutual fund managers keep an eye on the list while taking fresh/modifying positions in stocks in different categories of schemes.” 

The report further highlighted that Punjab & Sind Bank, Carborundum Universal, Bank of Maharashtra, Fert & Chem Travancore, New India Assurance, Jindal Stainless, Rail Vikas Nigam, Bharat Dynamics and IIFL Finance are among the potential stocks which may enter into the midcap category from smallcaps at present.  

On the other hand, payers like Piramal Pharma, Tata Teleservices, Fine Organic Inds, Nippon Life, Blue Dart Express, Gillette India, Clean Science, Trident and Dr Lal Pathlabs may move to smallcap category from midcap.  

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