Amfi rejig: NMDC, SAIL, BoB, 4 other stocks enter large cap category

Changes will apply from July-December 2021; newly-listed companies India Railway Finance, Macrotech, Indigo Paints and Sona BLW Precision Forgings enter mid-cap category

In the latest reclassification exercise by the Association of Mutual Funds in India (Amfi), public sector companies such as NMDC, Steel Authority of India (SAIL) and Bank of Baroda have been pushed to the large cap category from the mid cap segments.

Others such as Adani Total Gas, Apollo Hospital Enterprises, Cholamandalam Investment and Finance Company and Honeywell Automation India too have been moved to the large-cap category. Stocks that have been promoted to large cap have done exceedingly well in the last one year and have given returns in the range of 100-400 per cent.

Market participants say that Adani Gas and Apollo Hospitals have currently very low exposure among active equity schemes and moving them to the large-cap category will make them more appealing to the equity fund managers.

Currently, fund managers are permitted to invest up to 10 per cent of the scheme corpus in single stock irrespective of its performance.

Meanwhile, companies such as Hindustan Petroleum Corporation (HPCL), Hindustan Aeronautics (HAL) and PI Industries have been moved from large cap category to mid-cap category.

These changes will be applicable from the July to December 2021 period. Newly-listed companies India Railway Finance, Macrotech Developers, Indigo Paints and Sona BLW Precision Forgings have entered the mid-cap category.

Edelweiss in its note said that the cut off for the large cap is at Rs 37,700 crore, whereas the mid cap cut off works out to Rs 11,800 crore. Large cap stocks (top 100 in terms of market cap) contribute 71.44 per cent, mid cap stocks (stocks with mcap rank between 101 and 250) contribute 16.27 per cent and small cap stocks (251 below) contribute 12.29 per cent of the total market cap.

Stocks such as Tata Elxsi, APL Apollo Tubes, Kajaria Ceramics, Bank of Maharashtra are few stocks that have been moved from small cap to midcap segment.  With full market cap, the large cap classification has the highest exposure to banking, financial services and insurance (BFSI) at 26.9 per cent, IT (16.7 per cent), consumer (14.9 per cent), and Oil & Gas (12.2 per cent) sector.