Power Adani | BOB: Adani Power, Chola Invest, BoB may get AMFI’s big cap tag | Rare Techy

Mumbai: Stocks like Adani Power, Cholamandalam Investment, Bank of Baroda, HAL, and Bandhan Bank are likely to be upgraded from mid-cap to large-cap in the upcoming Association of Mutual Funds of India semi-annual reclassification, according to ICICI Securities.

IDBI Bank, HDFC AMC, Godrej Properties, SAIL, Zydus Life, Jubilant Food, and PB Fintech are likely to drop from the large-cap to mid-cap category, the brokerage said.

AMFI announces stock reclassification twice a year. The next round is scheduled for the first week of July.

Mutual fund managers should consult the AMFI classification to balance their portfolios according to category requirements.

Re-categorization should not lead to fresh inflows or outflows. There is no need for equity fund managers to actively change stock weightages in their respective portfolios to match the AMFI classification.

However, equity-oriented schemes, whose portfolios are centered on market capitalization, must readjust their holdings within one month of the announcement based on discretion.

AMFI classified stocks by taking into account data from January to June 2022. According to ICICI Securities, Tata Tele, KPR Mills, Tanla Platform, Poonawala Fin, Phoenix Mills, SKF India, and Chambal Fertilizers are likely to be shifted from small-cap to mid-cap category.