The half-yearly classification of stocks by the Association of Mutual Funds in India (AMFI) has seen seven stocks being downgraded from large- to mid-cap, while similar number of stocks were upgraded from mid- to large-cap.
Nykaa, JSW Energy and Tata Elxsi are some of the major stocks that were downgraded from large- to mid-cap in the half-yearly reshuffle based on market-cap by AMFI.
The other stocks which were downgraded from large- to mid-cap include Indus Tower, Page Industries Lodha (Macrotech Developers) and InfoEdge, according to a study released by Nuvama Alternative and Quantitative Research.
FSN E-Commerce stock plunged nearly 52 per cent in the last one year, while Page Industries declined 31 per cent since October 2022. Tata Elxsi has lost about 31 per cent since August last year, while Indus Tower erased about 29 per cent since July 2022.
Half-yearly exercise
All the mutual fund schemes have to rejig their portfolio every six months based on the stock classification announced by AMFI.
The top 100 companies in terms of full market capitalisation are categorised as large-cap, the next 101 to 250 stocks are mid-caps and the remaining are termed as small-cap companies in order to ensure uniformity in respect of the investment universe for various categories of equity schemes of mutual funds.
The new entrants into the large-cap space include Jindal Steel & Power, Punjab National Bank, IDBI Bank, Canara Bank, TVS Motor Co, Tube Investments and Mankind Pharma.
These shares have seen a sharp jump in prices in the last one year. Mankind Pharma has surged over 57 per cent from its issue price of ₹1,080 a share. TVS Motors climbed 61 per cent, and IDBI Bank advanced 91 per cent, while Canara Bank and Tube Investments rose over 71 per cent each in the last one year.
The upgrade from small- to mid-cap space include Punjab & Sind Bank, Carborundum Universal, Bank of Maharashtra, Fertilisers & Chemicals Travancore, Jindal Stainless, Rail Vikas Nigam, New India Assurance, Bharat Dynamics and IIFL Finance.
Despite the bullish market trend, all the recent listings except for Mankind Pharma have debuted in the small-cap category. However, 10 stocks slipped from mid- to small-cap category.
The market capitalisation cut-off for large-cap stocks was set at ₹49,700 crore, while the cut-off for mid-cap stocks was ₹17,400 crore.