The mutual fund body is likely to release its official list this week which will be valid from February to July this year.
Calculations done by Nuvama Alternative and Quantitative Research shows that among those that have a high probability of getting upgraded to midcap from largecap are –
ABB India, , Bosch and Trent.
Similarly, 8 stocks –
Metro Brands, , , UCO Bank, ZF Commercial, and – can be upgraded from smallcap to midcaps.
Among those that may see downgrades are –
Gland Pharma, Mphasis, Bandhan Bank, Paytm and .
AMFI stock categorization is mainly referred to by active equity mutual fund managers. As the stocks move up from lower categorization to higher (say small-cap to mid-cap and midcap to large-cap), it increases their visibility. Fund managers typically further analyze such stocks and add them as per their rationale while complying with the scheme mandate.
“The change in categorization doesn’t necessarily lead to incremental inflow 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,” said Abhilash Pagaria of Nuvama. The firm’s calculation shows that the market cap cut off for large cap should be Rs 49,000 crore and the cut-off for midcap should be Rs 16,900 crore.
Among those stocks that may get downgraded to smallcap from midcap are
, IEX, NALCO, , , and .
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
