AMFI announces reclassification of shares twice a year. The next round is scheduled for the first week of January and will take effect from February 1, 2025.
Mutual fund managers must consult the AMFI classification to balance their portfolio according to the category requirement. Recategorisation need not lead to fresh inflows or outflows. Active equity fund manager do not need to change the stock weights in their respective portfolios to match the AMFI share categories.
Hyundai Motors, Bajaj Housing Finance, NTPC Green and Swiggy are expected to be the new entrants in the large-cap category, said Nuvama. The brokerage said Adani Total Gas, IDBI Bank, Jindal Steel & Power, BHEL and NHPC, among others, could move from the large-cap category to mid-cap.
“Fuelled by the current market momentum, we now anticipate the AMFI large-cap cut-off to surge to ₹1 trillion (up from ₹840 billion in June 2024),” said Abhilash Pagaria, head Nuvama Alternative & Quantitative Research. The threshold for mid-cap stocks is expected to go up to ₹328 billion compared to ₹275 billion in June 2024, he said.
Stocks that could be moved from small-cap to the mid-cap categories are GE T&D India, 360 One WAM and Kaynes Tech; while Delhivery, Poonawalla Fincorp, Hindustan Copper, Gland Pharma, Bandhan Bank and Go Digit General Insurance could move from mid-cap to small-cap, said Nuvama.The likely new entrants into the small-cap category include Inventurus Knowledge Solutions, FirstCry (Brainbees), Emcure Pharmaceuticals, Afcons Infrastructure, Sai Life Sciences and DAM Capital among others, said the brokerage.
