MF Update: Major change in the stock category

The mutual fund industry body, Association of Mutual Funds in India (AMFI) has recently come out with a list of companies segregated into different categories. The cut-off for large-caps has come in at Rs 26,677 crore and Container Corporation of India (CONCOR) has been ranked last among the large-cap companies while, that for mid-caps, it’s Rs 6,955 crore. Last time, the cut off was at Rs 26,288 crore.

There were eight new entrants into the large-cap category. SBI Cards and Payment Services Private Limited (SBICPSL), which got listed in the first half of 2020 is at the top position in terms of new entrants with an average market capitalisation of Rs 55,151 crore in six months ending June 2020.

Besides this, out of seven new large-cap companies, three are from the healthcare sector. The recent run in this sector has helped more companies from this sector to become a part of the large-cap category. The companies that are now out of large-cap categories are majorly from the power sector and other sectors related to it. Power Finance Corporation, REC Limited and ABB India are a few companies that are now into the mid-cap category, which were earlier into the large-cap category.

In the mid-cap category, there were eight new companies that were earlier into the small-cap category. These were from diversified sectors including, finance and healthcare. The cut-off for the mid-caps category has come in at Rs 6,955 crore and JK Cement has secured the rank of 250. Last time, that is during the period ending December 2019, the cut-off for mid-cap companies was at Rs 8,245 crore.

According to SEBI circular, the top 100 stocks by market cap forms large-cap, while mid-caps companies lie between 101 and 250 and small-cap stocks are those that rank below 250.