Bajaj Housing Finance, NTPC Green Energy, Swiggy Latest update
Several recent listings, such as Hyundai Motors India Ltd., Bajaj Housing Finance Ltd., NTPC Green Energy Ltd., and Swiggy Ltd., have been classified as large-cap stocks, according to data released by the Association of Mutual Funds in India (AMFI).
Additionally, seven other companies previously classified as mid-cap have now been reclassified as large-cap companies. These companies include Rail Vikas Nigam, CG Power, ICICI Prudential, Polycab India, Indus Towers, Cummins India, and Info Edge.
Conversely, stocks like Adani Total Gas, NHPC, IDBI Bank, Shree Cements, Union Bank of India, Bharat Heavy Electricals, Canara Bank, Jindal Steel & Power, IndusInd Bank, Mankind Pharma, and Apollo Hospitals Enterprises have been downgraded to the mid-cap category from their previous classification as large-cap.
Furthermore, nine stocks, including Waaree Energies, Premier Energies, Vishal Mega Mart, Ola Electric Mobility, Inventurus Knowledge Solutions IKS, GE T&D India, 360 One WAM, Kaynes Tech., and Aditya Birla Fash, have been categorized as mid-cap stocks from their previous classification as small-cap.
Moreover, stocks like ITI (Indian Teleph.Ind.Ltd), ZF Commercial, Delhivery, Poonawalla Fin., Hindustan Copper, Motherson Sumi Wiring India, Global Health, Gland Pharma, Bandhan Bank, Mangalore Refi., Go Digit General Insurance, Star Health and Allied Insurance, and Apollo Tyres have been downgraded from the mid-cap category to the small-cap category.
According to the brokerage firm Nuvama Alternative & Quantitative Research, the current market momentum may lead to the cut-off for a large-cap stock being raised to ₹1 lakh crore from ₹84,000 crore in June. Additionally, the mid-cap threshold may increase ₹33,200 crore, up from ₹27,500 crore in June 2024.
Nuvama also stated that the change in categorization may not necessarily lead to increased inflows and outflows.
According to a note from Nuvama, active equity fund managers have the option to adjust their portfolios by adding or removing stocks, as well as increasing or reducing the weightage of certain stocks. This decision is based on fundamental, non-quantitative reasoning.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.