A couple of stocks from across the sectors including technology, industrials, e-commerce, real estate and chemicals may witness an upgrade from mid- to large-cap category and from small to mid-cap category in the next AMFI market cap review.
The half-yearly review of AMFI classification, as mandated by the market regulator Securities and Exchange Board of India (SEBI), is falling due and mutual fund industry body Association of Mutual Funds in India (AMFI) is expected to release a revised list of large-caps, mid-caps and small-caps by the first week of January, 2022.
While projecting the possible re-classification, brokerage ICICI Securities listed out stocks that may see a change in their current categorisation. It believes that companies like Mindtree, SRF, IRCTC, Tata Power, Mphasis, Godrej Properties, Macrotech Developers, Bharat Electronics and JSW Energy will be upgraded to large-cap category from midcap.
The point-to-point comparison showed that shares of IRCTC have jumped 110 per cent in the second half of 2021, while the benchmark BSE Sensex has gained 10 per cent during the same period.
Macrotech Developers and Tata Power each have gained 87 per cent between June 30 and December 16, 2021. It was followed by Mindtree (up 75 per cent), JSW Energy (up 73 per cent), Mphasis (up 50 per cent), SRF (up 49 per cent), Godrej Properties (up 44 per cent) and Bharat Electronics (up 17 per cent).
ICICI Securities further highlighted companies like Gujarat Fluorochemicals, Happiest Minds, Central Bank, Indian Energy Exchange, National Aluminium, Trident, Prestige Estates, Grindwell Norton and SKF India will be classified as mid-cap from small-cap.
The brokerage also believes that that new listing including Zomato, FSN E-Commerce, Paytm and PB Fintech will be classified as large-cap.
On the other hand, it sees a high probability for stocks including like YES Bank, Honeywell Automation, Colgate Palmolive, Punjab National Bank, Biocon, Lupin, Aurobindo Pharma, Bank of Baroda, NMDC, P&G Hygiene and Cholamandalam Investment to downgrade from large-cap to midcap category.
Players like RBL Bank, Castrol India, Affle India, Apollo Tyres, Vaibhav Global, Dhani Services may also see a downgrade from midcap category to small-cap.
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