Hero MotoCorp, BHEL, NHPC among 7 stocks that may be upgraded to largecaps in AMFI recategorization

Hero MotoCorp, NHPC and BHEL are among the stocks that are likely to see an upgrade in the upcoming AMFI semi-annual recategorization. On the other hand, SBI Cards and Payment Services, Marico and Berger Paints, among others may be downgraded.

The industry body Association of Mutual Funds of India (AMFI) classifies largecap companies as those ranked from 1-100 in market capitalization. As per the classification, Midcap companies are the next from 101-250, while those ranked from 251 onwards are classified as Smallcap companies.

Hero MotoCorp, Zydus Lifesciences, JSW Energy, NHPC, Bharat Heavy Electricals Ltd (BHEL), Samvardhana Motherson International and Bosch are potential entrants in the large cap category, according to Nuvama Institutional Equities.

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Stocks which can move from large cap to midcap include Berger Paints, SBI Cards, Marico, SRF, ICICI Lombard General Insurance Company, ICICI Prudential Life Insurance Company and Polycab India.

Meanwhile, HUDCO, IRB Infrastructure Developers, Bharat Dynamics, MRPL, BSE, Global Health, Hitachi Energy, NLC India, Cochin Shipyard, Tata Investment Corporation, National Aluminium, Hindustan Copper, Motilal Oswal Financial Services, ITI, Godrej Industries, Apar Industries and Blue Star are expected to be upgraded to midcap category from smallcap. 

Bharti Hexacom and Go Digit General Insurance may be the new additions in the midcap category.

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Contrary, Zee Entertainment Enterprises (ZEEL), Piramal Enterprises, IIFL Finance, Devyani International and The Ramco Cements, are among 19 stocks that may shift to smallcap category from midcap category, according to Nuvama Equities.

The other potential stocks to be moved in the smallcap category include Relaxo Footwear, CreditAccess Grameen, Kansai Nerolac, Hatsun Agro Product, Sundram Fasteners, SKF India, Timken India, Vedant Fashions, Grindwell Norton, Bayer Cropscience Narayana Hrudayalaya, Sun TV Network, Tata Chemicals and KPR Mill.

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The cut-off period spans from January 1, 2024, to June 30, 2024, while the announcement is expected in the first week of July. The categorisation will take effect from August 1, 2024, Nuvama Equities said.

The change in categorization doesn’t lead to incremental inflows or outflow. The active mutual fund managers keep an eye on the list while taking fresh/modifying positions in stocks in different categories of schemes, it added.

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