In MG’s semi-annual review, the multibagger Adani Group stock could be upgraded to large cap

Stocks that have recently been listed In the largecap category, LIC and Adani Wilmar could be newcomers.

Multibagger company Adani Power is among the stocks that could jump from the midcap to largecap category in mutual fund (MF) Semi Annual Review, according to Edelweiss Alternative Research, which has populated probable changes to the AMFI marketcap categorization.

Stocks in the midcap range According to the brokerage, Cholamandalam Investment and Fin, Bank of Baroda, Hindustan Aeronautics (HAL), Bandhan Bank, and Page Industries might all be moved to the largecap stocks category with the Adani Group stock in the assessment. Meanwhile, potential additions into the largecap category could include the newly listed Life Insurance Corporation of India (LIC) and Adani Wilmar.

The list of changes below is based on Edelweiss Alternative & Quantitative Research’s forecasts for the formal list to be provided by the Association of Mutual Funds of India (AMFI) between July 4 and July 7, 2022. The new list will be valid from August 1st through January 31st, 2023.

Adani Power, a power and energy firm that is part of the Gautam Adani-led Adani Group conglomerate, has produced a multibagger return of more than 119 percent in a year’s time, with a year-to-date gain of over 152 percent.

According to brokerage Edelweiss, largecap stocks such as PB Fintech (Policybazaar), Jubilant Food, Zydus Lifesciences, Steel Authority of India (SAIL), Godrej Properties, HDFC AMC, IDBI Bank, and Torrent Pharma could be downgraded to the midcaps category, whereas Delhivery and Vedant Fashions could be new entrants in the midcap stocks list that could be rejigged in the semi-annual review.

The listed equities must be strictly classified into baskets with a well-defined classification of largecap, midcap, and smallcap stocks, according to market regulator Securities and Exchange Board of India (SEBI). This is to ensure that the investing universe for equities mutual fund schemes is uniform.

In addition, SEBI has mandated that AMFI create a list of equities in this respect. As a result, AMFI generates a list of equities with categorization based on market capitalization provided by BSE, NSE, and MSEI, in cooperation with SEBI and stock exchanges.