AMFI Re-categorisation: Several stocks could witness a change in their market cap classification under the upcoming semi-annual categorisation exercise by the Association of Mutual Funds in India (AMFI), according to a report by Nuvama Alternative Research.
The prediction for stock re-categorisations has been shared by Nuvama Alternative Research on June 19.
The revised categorisation, expected to be announced in the first week of July and effective from August 1, 2026, serves as a key reference framework for domestic mutual fund managers when allocating capital across large-cap, mid-cap and small-cap schemes.
Nuvama’s analysis suggests that a number of companies are on track to enter the large-cap universe based on their average market capitalisation during the January-June 2026 review period.
The potential large-cap entrants include:
“Based on current average market-cap levels, we estimate the large-cap cut-off at around Rs 1.07 trillion,” Nuvama Research said in its report.
Vedanta Aluminium set for direct entry into large-cap category
A notable development in this review cycle is the inclusion of the Vedanta group’s demerged entities, which were listed on June 15, 2026.
According to the report, Vedanta Aluminium, with an estimated market capitalisation of Rs 1.84 lakh crore, is likely to qualify directly as a large-cap stock. Meanwhile, Vedanta Power, Vedanta Oil & Gas and Vedanta Iron & Steel are expected to fall into the small-cap category.
“Based on current market caps, Vedanta Aluminium (Rs 1, 84,222 crore) is going to qualify as Large Cap,” the report noted.
Lodha Developers and Indian Hotels face possible slide to mid-cap segment
On the other hand, several companies currently classified as large caps may lose their status in the upcoming reshuffle.
The stocks that could move from large-cap to mid-cap include:
Among the most closely watched names are Lodha Developers and Indian Hotels Company, both of which are at risk of slipping into the mid-cap category if current market-cap trends persist.
More about AMFI re-categorisations
While AMFI re-categorisation changes do not automatically result in inflows or outflows from mutual funds, they remain important for active fund managers when evaluating fresh investments and portfolio rebalancing.
“Changes in categorisation do not trigger incremental inflows or outflows. However, active mutual fund managers closely monitor the list when taking fresh positions or adjusting holdings across scheme categories,” Nuvama Research said.
Cut-off levels signal shifting market landscape
Nuvama estimates the large-cap cut-off at approximately Rs 1.07 trillion, slightly higher than Rs 1.05 trillion in December 2025. The mid-cap cut-off is projected at around Rs 328 billion, compared with Rs 348 billion in the previous review.
The final AMFI categorisation list, expected in early July, will be closely watched by investors and fund managers alike as it could influence stock visibility and investment positioning across mutual fund categories.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
