Meanwhile, the midcap threshold at the end of December 2023 is Rs. 22,000 crore, this time Rs. 27,500 crore is likely to be around.
Based on the average market capitalization for the period between January 1 to June 30, 2024, seven stocks are expected to make the cut in the largecap category. These include two-wheeler major Hero MotoCorp, state-run Bharat Heavy Electricals (BHEL) and NHPC. Other stocks expected to enter the India club are Zydus Lifesciences, JSW Energy, Bosch and Cummins.
Bosch is at the border, reports Nuwama.
The definition of largecap, midcap and smallcap stocks is based on the average of full mcaps reviewed by AMFI on half-yearly basis. The top 100 companies are classified as largecaps, while midcaps are companies between 101 and 250. The rest are clubbed in the smallcap category.
The semi-annual classification will come into effect from August 1, Nuwama said.
The current market capitalization of all these seven stocks is Rs. 1 lakh crore and they have grown between 242% to 79% in the last 12 months. State-run BHEL and NHPC have been the multibaggers with returns of 242% and 120% respectively. JSW Energy and Cummins India have returned 158% and 112% respectively in one-year period.
For now, Amfi classifies them as midcap stocks.
Meanwhile, an equal number of stocks are likely to be demoted from the largecap category to the midcap category. Berger Paints, SBI Cards & Payment Services, SRF, ICICI Lombard, Polycab India, ICICI Prudential Life Insurance. Among the stocks that are on the frontier are ICICI Lombard, Polycab India and ICICI Pru Life.
Polycab is on the Indian border.
A likely rally in these stocks is on relative underperformance in these stocks. Berger Paints (-10%), SBI Card (-14%) and SRF (8%) have seen price declines in the last 12 months. Although Polycab India (91%) and ICICI Lombard (35%) managed to outperform the Nifty (21%), these stocks may not be enough to maintain their position if Nuwama’s estimates come true.
Additionally, 18 stocks are expected to move from the current smallcap category to the midcap category, with April-listed Bharti Hexacom also likely to drop. Smallcaps that could graduate to midcaps include HUDCO, IRB Infra Developers, MRPL, Global Health (Medanta), BSE, Bharat Dynamics, Hitachi Energy, NLC India, Tata Investment Corporation, Hindustan Copper, National Aluminum Company, ITI, Motilal Oswal Financial Services. Included. (MOFSL), Apar Industries, Cochin Shipyard, Godrej Industries and Blue Star.
In contrast, 18 midcap stocks may find themselves slipping into the smallcap space. These are Zee Entertainment Enterprises, IIFL Finance, Devyani International, Piramal Enterprises, The Ramco Cement, Relaxo Footwear, SKF India, CreditAccess Grameen, Kansai Nerolac, Hatsun Agro, Sundaram Fasteners, Grindwell Norton, Timken India, Vedanta Crow Science, Baby. Sun TV Network Narayan Hridalaya and Glenmark Pharma.
Also Read: Nifty returns positive 9 times in 10 years in July, FII net buyers on 8 occasions
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