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What is the story about?
Muthoot Finance Ltd., HDFC AMC Ltd., Canara Bank Ltd. among other stocks are likely to be classified as largecap stocks from their current status of being midcap companies, according to Nuvama Alternative and Quantitative Research.
The Association of Mutual Funds in India (AMFI) is likely to announce its stock re-categorization in the first week of January 2026. This list becomes the reference framework for fund managers for investing.
Based on the current market cap levels, the largecap cut-off is likely to be ₹1.05 lakh crore, compared to ₹91,600 crore in June, while the midcap cut-off is likely to be ₹34,800 crore, compared to ₹30,700 crore in June.
The cut-off period will last until December 31, 2025, with the final categorization taking effect on February 1, 2026.
Here are the likely market cap changes that the stocks could see, as per the Nuvama Report:
Muthoot Finance, HDFC AMC, Canara Bank, Bosch, Cummins india, Polycab, Hero MotoCorp, Tata Capital, Tata Motors Commercial Vehicles, LG Electronics India, ICICI Prudential Mutual Fund (when it lists) are some of the midcap stocks, that are likely to be categorized as largecap stocks from next year, according to Nuvama Alternative.
On the other hand, stocks like Info Edge (India), Lupin, Bajaj Housing Finance, Havells India, Zydus Lifesciences, REC, Indus Towers, United Spirits, Mankind Pharma, JSPL and Shree Cement are names that could be downgraded to a Midcap category from their current largecap status.
According to Nuvama Alternative, Endurance Technologies, Poonawalla Fincorp are Smallcap stocks that could be reclassified into Midcaps, while new listings such as Groww, Lenskart, HDB Financial, Meesho, Anthem Biosciences, and PhysicsWallah will also most likely be categorized as Midcap companies.
On the other hand, stocks such as Sona BLW, Gujarat Gas, LIC Housing Finance, AIA Engineering, Metro Brands, Ajanta Pharma, Honeywell Automation, Exide Industries, KPIT Tech, Central Bank of India, AWL Agri, NCL India and Tata Elxsi, are some Midcap stocks that could be pushed lower into a smallcap category.
Most of the other new listings, from Urban Company, to JSW Cement, Epack Prefab, Anand Rathi Shares, Pine Labs, Pace Digitek, Studds Accessories, among others will mostly be categorized as smallcap companies, according to the Nuvama Alternative note.
Based on the current classification, the 1st to the 100th company based on their six-month average market cap are categorized as largecap companies, companies from the 101st position till the 250th place are midcaps, while the 251st company onwards are smallcaps.
There is no rule that reclassification would lead to a inflows or outflows in a particular stock. "An active equity fund manager may choose to add / remove or increase / reduce weightings on stocks from their respective portfolios, depending upon their fundamental rationale," Nuvama Alternative's note said.
The Association of Mutual Funds in India (AMFI) is likely to announce its stock re-categorization in the first week of January 2026. This list becomes the reference framework for fund managers for investing.
Based on the current market cap levels, the largecap cut-off is likely to be ₹1.05 lakh crore, compared to ₹91,600 crore in June, while the midcap cut-off is likely to be ₹34,800 crore, compared to ₹30,700 crore in June.
The cut-off period will last until December 31, 2025, with the final categorization taking effect on February 1, 2026.
Here are the likely market cap changes that the stocks could see, as per the Nuvama Report:
From Midcap To Large Cap
Muthoot Finance, HDFC AMC, Canara Bank, Bosch, Cummins india, Polycab, Hero MotoCorp, Tata Capital, Tata Motors Commercial Vehicles, LG Electronics India, ICICI Prudential Mutual Fund (when it lists) are some of the midcap stocks, that are likely to be categorized as largecap stocks from next year, according to Nuvama Alternative.
From Largecap To Midcap
On the other hand, stocks like Info Edge (India), Lupin, Bajaj Housing Finance, Havells India, Zydus Lifesciences, REC, Indus Towers, United Spirits, Mankind Pharma, JSPL and Shree Cement are names that could be downgraded to a Midcap category from their current largecap status.
From Smallcap To Midcap
According to Nuvama Alternative, Endurance Technologies, Poonawalla Fincorp are Smallcap stocks that could be reclassified into Midcaps, while new listings such as Groww, Lenskart, HDB Financial, Meesho, Anthem Biosciences, and PhysicsWallah will also most likely be categorized as Midcap companies.
From Midcap To Smallcap
On the other hand, stocks such as Sona BLW, Gujarat Gas, LIC Housing Finance, AIA Engineering, Metro Brands, Ajanta Pharma, Honeywell Automation, Exide Industries, KPIT Tech, Central Bank of India, AWL Agri, NCL India and Tata Elxsi, are some Midcap stocks that could be pushed lower into a smallcap category.
Most of the other new listings, from Urban Company, to JSW Cement, Epack Prefab, Anand Rathi Shares, Pine Labs, Pace Digitek, Studds Accessories, among others will mostly be categorized as smallcap companies, according to the Nuvama Alternative note.
Based on the current classification, the 1st to the 100th company based on their six-month average market cap are categorized as largecap companies, companies from the 101st position till the 250th place are midcaps, while the 251st company onwards are smallcaps.
There is no rule that reclassification would lead to a inflows or outflows in a particular stock. "An active equity fund manager may choose to add / remove or increase / reduce weightings on stocks from their respective portfolios, depending upon their fundamental rationale," Nuvama Alternative's note said.
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