There is high probability of YES Bank, Adani Enterprises, PI Industries and Hindustan Aeronautics to switch from mid-cap to large-cap in the proposed AMFI reclassification of stocks based on market capitalisation, said a report by ICICI Securities (I-Sec).

According to I-Sec, Jubilant Food also has a chance to move from mid-cap to large-cap.

As mandated by the SEBI, the Association of Mutual Funds in India (AMFI) is expected to release a fresh list for categorisation of stocks into large-cap, mid-cap and small-cap categories, based on average market cap for H2-CY20, by January 5, 2021.

Similarly, Bank of Baroda, General Insurance Corporation, Container Corporation and United Breweries have high probability to move from large-cap to mid-cap, while MRF and NDMC have low probability to enter the mid-cap space.

The SEBI circular on asset allocation of multi-cap funds has mandated that minimum 25 per cent of total assets have to be allocated towards large-, mid- and small- caps each. The move was to ensure proper nomenclature of mutual fund categories and benchmarking of schemes as most of the schemes posed concentration risk by holding more large-cap stocks. Similarly, nearly a dozen companies-- Laurus Labs, Indiamart Intermesh, Navin Fluorine International, Dixon Technology, Alok Industries, Astrazeneca Pharma, Deepak Nitrites, Bombay Burmah and Suven Pharma, (all high propable candidates) and Granules India and MCX (low propability)-- are expected to move from small-cap to mid-cap, said ICICI Securities .

On the other hand, CESC, TTK Prestige and Tata Chemicals (low probability), while Kajaria Ceramics, SKF India, Apollo Tyres, JM Financial, Cholamandalam Financial, V-Guard, PVR, Symphony and Future Retail are most likely to move from mid-cap to small-cap space.

At the end of October 2020, multi-cap funds had assets under management (AUM) of ₹1.45 lakh crore.