Four recently listed stocks—Hyundai Motors India Ltd., Bajaj Housing Finance Ltd., NTPC Green Energy Ltd., and Swiggy Ltd.—are expected to be classified as largecap during the upcoming semi-annual stock categorization by the Association of Mutual Funds in India (AMFI), according to research by Nuvama Alternative and Quantitative Research.
AMFI is set to release the updated stock classifications in the first week of January 2025. The research indicates that the current market momentum could push the cutoff for largecap stocks to ₹1 lakh crore, up from ₹84,000 crore in June. Similarly, the midcap threshold is anticipated to rise to ₹32,900 crore, from ₹27,500 crore previously.
Among the four stocks, Swiggy and Bajaj Housing Finance stand out as the top performers. Swiggy has seen a remarkable rise, with its shares now trading more than 50% above its IPO price, bringing its market capitalization to ₹1.33 lakh crore. Meanwhile, Bajaj Housing Finance, despite a recent consolidation phase, doubled on its listing day and reached a post-listing high of ₹188, although it has since corrected by over 20%.
Hyundai Motors India, the largest IPO in India history, is currently trading below its IPO price, which reflects a challenging market environment for the stock.
In addition to these newcomers, other stocks such as CG Power, ICICI Prudential, Polycab India, and Rail Vikas Nigam (RVNL) are also expected to be upgraded from midcap to largecap, according to Nuvama analysis.
It is important to note that while these changes in categorization may affect how fund managers position their portfolios, they will not directly influence inflows or outflows from mutual funds.
