Indian Hotels, nine midcaps move to largecap basket in Amfi reshuffle

Amfi's July 2025 stock reclassification sees 10 midcaps, including Indian Hotels and Solar Industries, move to the largecap list based on six-month market cap average

The large and midcap spaces of mutual funds (MFs) have undergone a churn with the Association of Mutual Funds in India (Amfi) issuing a revised list of stocks for each of the market capitalisation (mcap)-based baskets.

 

Indian Hotels, Solar Industries and Mazagon Dock Shipbuilders are among 10 midcap stocks that will move to the largecap universe of MFs from August 1.

 

According to an analysis by Nuvama Alternative and Quantitative Research, 11 largecap stocks, including Rail Vikas Nigam, Hero Motocorp, Indian Overseas Bank and Cummins India, have moved to the midcap category. 

The midcap list has seen further changes as nine smallcap stocks have earned upgrades and two new listings — Hexaware Technologies and ITC Hotels — also find a mention in the 150-stock universe.

 

Amfi revises the largecap, midcap and smallcap stock list in January and July every year. 

 

The half-yearly reclassification is crucial for mcap-based schemes like largecaps, midcaps and smallcaps to remain true-to-the-label by aligning portfolios in accordance with the category mandate.

 

The revision, which is based on the average mcap of each stock in the previous six months, classifies the top 100 stocks by mcap in the previous six months as largecaps. The next 150 stocks are midcaps. The rest belong to the smallcap category.

 

In the past, stocks that have seen upward migration have outperformed those that witnessed downward migration around the time of announcement.

 

Equity schemes in the flexicap, midcap, largecap, smallcap, large and midcap and multicap have combined assets under management (AUM) of over ₹22 trillion.

 

Meanwhile, correction in the initial months of 2025 led to a decline in mcap cutoffs to qualify as largecaps and midcaps.

 

“The market has remained quite volatile over the past six months, leading to a decline in mcap cutoff levels from their December 2024 highs. Amfi’s mcap cutoff for largecaps is now ₹91,600 crore (down from ₹1 trillion in December 2024), while the midcap threshold is expected to decline to ₹30,800 crore (from ₹33,200 crore in December 2024),” the Nuvama report stated.

 

This is the first significant decline in largecap cutoff during the past four years.