Polycab India, Lodha, Shriram Finance, and PFC may migrate to largecaps

Polycab India, Macrotech Developers (Lodha), Shriram Finance and Power Finance Corp (PFC) are among stocks seen migrating from mid-caps to large-caps following the semi-annual review carried by mutual fund industry body Association of Mutual Funds in India (AMFI).

Meanwhile, UPL, Adani Wilmar, IRCTC and PI Industries could lose their ‘largecap’ status.

Further, Mazagon Dock, Suzlon Energy, Lloyds Metals and SJVN could migrate from smallcap universe to midcap universe, as per an analysis done by Nuvama Alternative & Quantitative Research.

According to a framework laid down by market regulator Securities and Exchange Board of India (Sebi), the top 100 companies in terms of full market capitalisation are tagged as largecaps; those between 101 and 250 are midcaps and stocks beyond 251 are smallcaps.

AMFI will release a fresh list of stocks based on their average market capitalisation for the period between July and December.

The list has to be released during the first five days of January 2024.

The analysis conducted by Nuvama is based on the stock price movement between July and September. Analysts try to predict the stocks that are likely to get upgraded or downgraded.

Typically, those which migrate from midcap to largecaps and smallcaps to midcaps tend to outperform.

Among the newly-listed companies, Jio Financial Services, hived off from Reliance Industries (RIL), is expected to get added to the large-cap universe.

JSW Infrastructure, which got listed on Tuesday, could get a place among 150-midcaps, while over two dozen others that have got listed in the past three months will have to settle with a ‘smallcap’ tag.

The final list of stocks could change depending on the share price movement during the remaining two months of the review period.