Public sector undertakings to dominate list of Amfi upgrades, shows data

Public sector undertakings (PSUs) to dominate list of Amfi upgradesPublic sector undertakings (PSUs) dominate the list of companies that are slated to get upgraded from ‘midcaps’ to ‘largecaps’ during the semi-annual reclassification exercise done by mutual fund industry body Amfi. Indian Railway Finance Corporation (IRFC), Power Finance Corporation (PFC), Union Bank of India, REC and Indian Overseas Bank are the five PSUs out of the total eight pegged to move up the ladder, showed an analysis done by IIFL Alternative Research. Meanwhile, Mazagon Dock and SJVN are seen upgraded from ‘smallcaps’ to ‘midcaps’. This follows sharp outperformance in the PSU pack this year.

 The Nifty PSE has rallied over 50 per cent in the past six months, beating 12 per cent advance in the benchmark Nifty 50 index. The cutoff date for Amfi’s latest rebalancing exercise is December 31. 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 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. Typically, those which migrate from midcap to large caps and smallcaps to midcaps tend to outperform.