AMFI Classification: Jio Fin Breaks Ground as a New Large-Cap Entrant

AMFI's revised market categorization boosts Jio Financial to large-cap. Shifts include PFC, IRFC, and Macrotech in mid to large-cap, while UPL, Adani, and PI Industries move from large to mid-cap. Mazgaon Dock, Suzlon, and others upgrade from small to mid-cap. Market dynamics impact active equity mutual fund strategies.
AMFI Classification: Jio Fin Breaks Ground as a New Large-Cap Entrant

On January 4, the Association of Mutual Funds of India (AMFI) unveiled the updated market categorization list for the first half of the calendar year 2024 (H1 CY24). The revised thresholds now place large-cap companies at Rs 67,000 crore, up from Rs 49,700 crore in June 2023, and mid-cap companies at Rs 22,000 crore, an increase from Rs 17,400 crore. 

Notably, Jio Financial Services has now officially attained large-cap status, while Tata Technologies, IREDA, and JSW Infrastructure find themselves in the mid-cap category due to recent market gains.

AMFI classifies large-cap firms as ranked from 1 to 100 in market capitalization, mid-cap firms from 101 to 250, and small-cap firms as those ranked 251 and beyond. The updated list is set to be effective from February to July 2024. Abhilash Pagaria, Head of Nuvama Alternative & Quantitative Research, emphasized the significance of the AMFI stock categorization list for active equity mutual fund managers. He highlighted that recategorization enhances the visibility of stocks as they progress from lower categorizations to higher ones.

AMFI’s latest classification introduces new SmallCap entries.

RR KabelESAF Small Finance Bank
Cello WorldHMA Agro Inds
Honasa ConsumerYatharth Hospitals
Concord BiotechInnova Captab
Nuvuma WealthGandhar Oil Refinery
Happy ForgingsZaggel Prepaid
Signature GlobalYatra Online
SBFC FinanceVishnu Prakash R
TVS supply Samhi Hotels
Innox IndiaEMS
Doms IndustriesJupiter Life Line Hospital
Ideaforge TechBlue Jet Healthcare

In terms of market movements, several companies experienced shifts in categorization. Notable transitions include PFC, IRFC, Macrotech Developers, Polycab India, REC, Shriram Finance, Union Bank, and Indian Overseas Bank moving from mid-caps to large-caps due to their recent stock rallies. On the other hand, stocks such as Mazgaon Dock, Suzlon Energy, Lloyds Metals, SJVN, Kalyan Jewellers, KEI Industries, Credit Access Grameen, Exide Industries, Nippon Asset Management, Ajanta Pharma, Narayana Hrudalaya, and Glenmark Pharma upgraded from small-caps to mid-caps.

AMFI’s latest classification introduces new SmallCap entries.

Febbank Financial ServicesManjo Vaibhav
Newweb TechnologiesCyient DLM
Protean eGovIndia Shelter Finance
Aeroflex IRM Energy
Ask AutomaticUtkarsh Small Finance
Credo BrandsRishabh Instrum
Updater ServicesSai Silks
Azad EngineeringFlair Writing
Muthoot MicrofinSuraj Estate
Motisons JewellersValiant Laboratories
Senco GoldPyramid Technoplast
Ratnaveer PrecisPlaza Wires
RBZ Jewellers

Conversely, some stocks faced downgrades, with UPL, Adani Wilmar, PI Industries, IRCTC, Bosch, Tube Investments, Samvardhana Motherson, and Hero Motocorp moving from large-caps to mid-caps. Stocks like Rajesh Exports, Pfizer, Aarti Industries, Vinati Organics, Crompton Greaves Consumer Electricals, Whirlpool India, Atul, Navin Fluorine, Sumitomo Chemicals, Laurus Labs, Aditya Birla Fashion, Bharat Dynamics, Bata India, Kajaria Ceramics, and Carborundum Universal were demoted from mid-caps to small-caps.

Furthermore, the small-cap list saw new entrants, primarily comprising recently listed companies. The market reshuffling is expected to influence the strategies of active equity mutual fund managers. While recategorization may not immediately impact fund flows, it enhances the visibility of stocks as they ascend to higher categories.

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