With the Semi-annual review of categorisation (based on market-cap) around the corner, Edelweiss Alternate Research lists out stocks that may move from their current categorisation
Indian market has already seen the boom and the bust in 2020 so far. The benchmark indices hit a fresh record high in January and then quickly reversed gains to hit 52-week low in matter of days.
A slowdown in the economy and coronavirus outbreak will drive the upcoming AMFI reclassification that could see many midcap pharma stocks reclassified as largecaps.
With the Semi-annual review of categorisation (based on market-cap) around the corner, Edelweiss Alternate Research lists out stocks that may move from their current categorisation.
With half-year completion, as mandated by SEBI the renewed list of large, mid, and smallcaps will be released by AMFI by the first week of July 2020. The new categorisation will be effective from August 2020 and hold till January 2021.
Indian mutual funds will have to re-align their schemes within one month.
According to the Edelweiss Alternate Research report, Abbott India, IGL, Adani Green, Cadila Healthcare, Alkem Laboratories, and SBI Cards could be shifted from the midcap category to the largecap category post the reclassification.
On the other hand, stocks like Piramal Enterprises, ACC, Kansai Nerolac, ABB India, REC, OFSS, and Zee Entertainment could be reclassified as midcaps from present classification of large-caps.
In the broader market space, Edelweiss Alternate Research expects 10 stocks to be reclassified as midcaps. These include Escorts, Central Bank of India, Ruchi Soya, Tube Investments, Metropolis Healthcare, Jubilant Life Sciences and TTK Prestige.
There are 7 stocks that could be reclassified as smallcaps - Apollo Tyres, Shriram City Union, Ujjivan Small Finance, Mangalore Refinery, EIH, Future Lifestyle, and PNB Housing Finance.
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