PNB, Canara Bank, JSPL among stocks which may insert largecap topic in AMFI review

Analysts at Nuvama Alternative & Quantitative Research had also done an early analysis for change in the Association of Mutual Funds in India (AMFI) market cap classification for H2 CY23. The official version will be made public by AMFI in the first week of July 2023, and the updated version will be effective from August 2023 to January 2024.  Potential large-cap entrants, as per Nuvama, are Jindal Steel and Power (JSPL), Punjab National Bank (PNB), Canara Bank, IDBI Bank, Tube Investments, and Indian Overseas whereas borderline names are Yes Bank, TVS Motors, Union Bank, Shriram Finance.

Stocks that can move from large cap to midcap are Tata Elxsi, Nykaa (FSN E-Commerce), JSW Energy, Page Industries, Indus Towers, and Zomato whereas borderline names are Trent, Microtech Developers (Lodha), Info Edge, PI Industries, as per the brokerage's estimates.

Meanwhile, stocks that can move from midcap to smallcap are Piramal Pharma, Tata Teleservice, Nippon Life, and Fine Organic Inds, whereas borderline names are Clean Science, Gillette India, Blue Dart Express, and Trident.

As per the capital market regulator Securities and Exchange Board of India (SEBI), the listed stocks must be strictly categorized into baskets with a well-defined classification of large-cap, midcap and smallcap stocks. This is to ensure uniformity in respect of the investment universe for equity mutual fund schemes.

Further, SEBI has also stipulated that the Association of Mutual Funds of India (AMFI) shall prepare the list of stocks in this regard. Accordingly, AMFI in consultation with SEBI and stock exchanges, prepares the list of stocks with categorization based on the market capitalization provided by BSE, NSE and MSEI.