According to SEBI’s definition, with a six-month average market capitalisation, the first 100 stocks are categorised as large cap, the next 250 as mid cap and the rest as small cap.
Mutual fund lobby Association of Mutual Funds in India (Amfi) has promoted food delivery platform Zomato, Nykaa owner FSN E-Commerce Venture, Paytm owner One97 Communication, Policybazaar owner PB Fintech Ltd and nine other stocks from mid-cap to large-cap category, according to brokerage Edelweiss’ report.
Other stocks such as Mindtree, SRF, IRCTC, Tata Power, Mphasis, Godrej Properties, Macrotech Developers, Bharat Electronics and JSW Energy too have been moved to the large-cap category.
This list will be effective from February to July 2022. The changes were made exactly in line with its earlier December projection, the brokerage report added.
The report also said that 20 firms — Bandhan Bank, Bosch, Cholamandalam Invest and Fin, P&G Hygiene & Health Care, Aurobindo Pharma, NMDC, Lupin, Bank of Baroda, Biocon, Colgate-Palmolive India, Punjab National Bank, Honeywell Automation India, Yes Bank, Star Health and Allied Insurance, Clean Science and Technology, Nuvoco Vistas Corp, Aditya Birla Sun Life AMC, GR Infraprojects, Aptus Value Housing Finance India and Devyani International — have been downgraded to mid cap from large cap.
Stocks such as Gujarat Flurochemicals, Happiest Minds Technologies, Central Bank of India, Indian Energy Exchange, National Aluminium Co, Trident, Prestige Estates Projects, Grindwell Norton and CG Power and Industrial Solutions have been upgraded to mid cap from small cap.
The brokerage firm said that 32 new debutants were also included in small-cap category, including Metro Brands, MedPlus Health Services, Latent View Analytics, Chemplast Sanmar, CE Info Systems, Glenmark Life Science, Sapphire Foods, Go Fashion, Ami Organics, RateGain Travel Tech, Supreiya Lifescience, India Pesticides, CMS Info Systems, Fino Payments Bank, Rolex Rings, Paras Defence and Space Tech, Anand Rathi Wealth, and Shriram Properties among others.
Meanwhile, the brokerage firm has downgraded 20 stocks to small cap from mid cap. They include The Phoenix Mills, Alembic Pharma, Manappuram Finance, Glenmark Pharmaceuticals, Exide Industries, Blue Dart Express, Wabco India, Apollo Tyres, Bank of Maharashtra, Affle India, Indigo Paints, RBL Bank, and Jubilant Pharmova among others.
In 2017, market regulator Securities and Exchange Board of India (SEBI) had defined large, mid and small-cap companies to ensure uniformity in the investment universe for equity mutual fund schemes. It had also said that AMFI will semi-annually prepare and review the list of stocks according to the criteria specified under the circular.
According to SEBI’s definition, with a six-month average market capitalisation, the first 100 stocks are categorised as large cap, the next 250 as mid cap and the rest as small cap.
