Jindal Steel, PNB, IDBI Bank among others may get AMFI largecap tag

Mumbai: Jindal Steel, Punjab National Bank, Canara Bank, IDBI Bank, and Tube Investments, among others, are likely to be upgraded from mid-cap to large-cap in the upcoming Association of Mutual Fund in India’s semi-annual reclassification, according to Nuvama Alternative & Quantitative Research. Jindal Steel, PNB, Canara Bank, Indian Overseas Bank, and Union Bank of India have rallied over 30% in the last six months.

The brokerage said Tata Elxsi, FSN E-Commerce, JSW Energy, Page Industries, Indus Towers, and Zomato would likely be shifted from large-cap to mid-cap category.

AMFI announces reclassification of shares twice a year. AMFI will release the official list in the first week of July 2023 and the fresh list will be valid for August 2023 to January 2024.

Punjab & Sind Bank, Bank of Maharashtra, New India Assurance, IIFL Finance, FACT are some of the companies which can move from the small-cap to mid-cap category.

Mutual fund managers must consult the AMFI classification to balance their portfolio according to the category requirement. The re-categorisation need not lead to fresh inflows or outflows. An active equity fund manager doesn’t need to change stock weightages in their respective portfolios to match the AMFI classification. But, equity-oriented schemes, whose portfolios are focussed on market capitalisation, must realign their holdings within one month of the announcement based on discretion.