Assuming that prices will not deviate a lot from current levels during June, overall 20 stocks could potentially get upgrades with seven of them moving from midcap space to largecap, and 13 from smallcap space to midcap.
iStockOf the above 20 stocks, 14 belong to cyclicals (industrials and lenders)
NEW DELHI: Thanks to strong interest in cyclical and digital stocks in the last one year, names from these segments will dominate the upgrades when Association of Mutual Fund in India (Amfi) updates its biennial size reclassification list in early July.
Assuming that prices will not deviate a lot from current levels during June, overall 20 stocks could potentially get upgrades with seven of them moving from midcap space to largecap, and 13 from smallcap space to midcap, said ICICI Securities.
Of the above 20 stocks, 14 belong to cyclicals (industrials and lenders), while five belong to digital domain (platform, e-commerce or niche digital technology), and one to defensive (healthcare).
“Upper limit for qualifying as a midcap stock crosses an all-time high of $5 billion last seen during May 2018 and is up 5 times from the taper tantrum lows of $1 billion. Upper threshold for smallcaps at $1.6 billion is still below the level seen in January 2018 level of $1.8 billion,” said Vinod Karki and Siddharth Gupta of ICICI Securities.
The Amfi classification tags top 100 stocks by average marketcap between January and June as largecap, next 150 as midcap and the rest as smallcap.
Interestingly, two of the newly listed stocks--IRFC and Indigo Paints--will debut directly as midcap stocks in the Amfi list. Other new listings are expected to classify as smallcaps.
Please note that major stock price movements in the rest of June could change the list of entries and exits among size classes.
iStock
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