MF stock universe set for a rejig; ICICI Securities expects 4-5 switches

The universe of stocks that equity fund managers have to choose from is set for a rejig. According to an analysis done by ICICI Securities there could be four to five switches between large-caps and mid-caps and about a dozen between mid-caps and small-caps. Among the stocks that could move out of the large-cap universe are MRF, NMDC and United Breweries.

Meanwhile, YES Bank could re-enter the large-cap universe at it is currently the 88th most valued company in the country. The large-cap universe comprises top 100 stocks by market capitalisation. The next 150 stocks by market value fall in the mid-cap bucket and the rest of the companies are considered small-caps.

Laurus Labs, IndiaMart, Navin Fluorine, and Dixon Tech are some companies that could graduate from small-caps to mid-caps, shows the ISec analysis. Following the sharp run-up in the market, the baseline market cap for large- and small-caps is set to increase to Rs 26,700 crore and Rs 8,200 crore, respectively, says the brokerage.