Tata Elxsi, 6 other midcap stocks upgraded to largecaps after AMFI change

 

• AMFI releases list of market capitalization classification to classify stocks into largecap, midcap and smallcap

Association of Mutual Funds of India (AMFI) has released the list of market capitalization classification to classify stocks into Largecap, Midcap and Smallcap based on six months average market capitalization (July 1, 2022 to December 30, 2022).

The classification will be the market cap benchmark for the first half of the current year (H1CY23). Equity oriented schemes focused on market cap classification will have to re-align the schemes within the next one month.

Varun Beverages, ABB India, Page Industries, Tata Elxsi, Bosch, Trent, PI Industries are the midcap stocks which have been upgraded to largecap stocks under AMFI classification.

Meanwhile, smallcap stocks Timken India, Metro Brands, Blue Dart Express, Fine Organic Industries, UCO Bank, ZF Commercial Vehicle Control, Apollo Tyres, KPIT Tech have moved into the midcap segment.

All the new listings have started under the smallcap category, while demerged entity Piramal Pharma has made an entry in the midcap category.

“The cut off market cap for large caps is ₹489 billion while the mid cap cut off is ₹168 billion. In total mcap, Large Cap Stocks (Top 100) contributed 69.4% vs 69.2% (July Review), Mid Caps (101-250) featured 16% vs 16.5% (July Review), Small Caps (251 & above) featured 14.6 % vs 14.3% (July review)," highlighted brokerage Edelweiss.

As per capital markets regulator Securities and Exchange Board of India (SEBI), listed stocks should be strictly classified into baskets with a well-defined classification of largecap, midcap and smallcap stocks. This is to ensure uniformity with respect to the investment world for equity mutual fund schemes.

Further, SEBI has also prescribed that the Association of Mutual Funds of India (AMFI) shall prepare the list of shares in this regard. Accordingly, AMFI, in consultation with SEBI and stock exchanges, prepares list of stocks with classification based on market capitalization as provided by BSE, NSE and MSEI.


SEBI's circular on Classification and Rationalization of Mutual Fund Schemes defines large, mid and smallcap stocks based on 6 month average of full market cap. The stock classification is as follows: Large Cap: 1st to 100th company in terms of full market capitalization; Midcap: 101st-250th company in terms of full market capitalization; Smallcap: 251st company ahead.