Suzlon Energy, Tata Technologies shares may join AMFI midcap category; IREDA likely smallcap entrant, says Nuvama

With the recent rally in stocks, cut off for entering largecap and midcap categories has likely increased, with many rallying smallcaps such as Suzlon Energy Ltd, Mazagon Dock Shipbuilders Ltd, Kalyan Jewellers Ltd, Ajanta Pharma Ltd, SJVN Ltd and Exide Industries Ltd likely to join AMFI's semi-annual categorisation of midcap stocks.

As per early estimates by Nuvama, Emami Ltd, Narayana Hrudayalaya Ltd, Lloyds Metals Ltd and KEI Industries Ltd could be among 14 smallcap stocks that may find place in the AMFI's forthcoming midcap categorisation. Tata Technologies Ltd and JSW Infrastructure could be two new entries to the AMFI midcap list.

On the flipside, Bharat Dynamics Ltd, Rajesh Exports, Vinati Organics, Atul Ltd, Pfizer Ltd, Laurus Labs, Bata India and Kajaria Ceramics are some of the midcap shares that may be moved to the AMFI Smallcap category.

Also read: Suzlon Energy shares up 270% in 2023. What Kotak says on stock valuation

A host of recent debutants such as IRDEA Ltd, RR Kabel, Cello World, Concord Biotech and Honasa Consumer, among others, could join the Smallcap category. Here's the complete list:

Meanwhile, Jio Financial Ltd could be a new entrant to the AMFI's largecap category. A few stocks such as Power Finance Corporation (PFC), IRFC Ltd, Polycab India, REC Ltd, Union Bank and Indian Overseas Bank could move from midcap to largecap category.

Nuvama said the official changes would be announced by AMFI in the first week of January, which would be applicable from February to July 2024.

It noted that the large-cap market cap cutoff stood at Rs 49,700 crore, and the midcap cutoff at Rs 17,400 crore. But the market-cap cutoff for largecap may get increased to Rs 66,700 crore and that of midcaps to Rs 21,900 crore.

"The change in categorization doesn’t lead to incremental inflows or outflow. The active mutual fund managers keep an eye on the list while taking fresh/modifying position in stocks in different category of schemes," Nuvama noted.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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