AMFI reorganization: Indian hotel, solar, Mazagon terminal moved to LargeCap; Hero Motocorp, RVNL fell to Chinese stocks

The latest revision of the Institute of Mutual Funds of India (AMFI) makes a major reshuffle of the LargeCap, MidCAP and SmallCAP categories a change in market dynamics. Starting August 1, several stocks will see changes in their market cap categories, affecting mutual fund allocations and investor sentiment.

Key changes in the market cap list

Due to the growth in market capitalization, the Indian hotels, solar energy industry and Mazagon Pier shipyard have been upgraded from medium to LargeCap.

11 major stocks, including Hero Motorcycle, Railway Vikas Nigam, Indian Overseas Bank and Cummins India, have now been downgraded to mid-cap.

Hexaware Technologies and ITC Hotels have entered the mid-cap title universe, adding 150 inventory lists, while nine small-cap stocks have been upgraded to mid-cap stocks.

Latest Threshold Adjustment for AMFI

Under its biennial revision, the mutual fund industry institution AMFI has reduced the market capitalization of large stocks to Rs 91,600 crore (from Rs 1 lakh to Rs 91,600 crore in December 2024). The MidCAP deadline has also been modified to Rs 30,800 crore (Rs 33,200 crore in December 2024). According to analysis of alternative and quantitative studies by Nuvama, this marks the first significant reduction in the critical value of the big gecap in four years, indicating changes in market conditions.

Why this is important to investors

This change will directly affect mutual fund strategy, as funds redistribute their holdings based on the new list. The reduction in the LARGECAP threshold indicates continued market volatility, thus adjusting inventory classification. For retail and institutional investors, these changes offer new opportunities to reevaluate portfolios and potentially gain new upgrades.

Key Points

• Indian Hotels, Solar Industry and Mazagon Pier Move to LargeCap
• Hero Motocorp, Rail Vikas Nigam and Indian Overseas Bank transfer to mid-cap stocks
• Hexaware Technologies and ITC Hotel join the Midcap Universe
• A massive threshold cut to Rs 91,600 crore marks the first major reduction in four years

As AMFI’s revised list takes effect, mutual funds and investors will need to adapt to these changes.

As market caps of various sectors undergo significant changes, the restructuring may lead to new opportunities for medium and large groups.