AMFI H1 CY27 Rejig May Put Jio Platforms, NSE and Lenskart in Large-Cap Category: Nuvama

Key Takeaways

• Nuvama Alternative Research expects seven companies, including Jio Platforms and NSE, to enter the large-cap category in AMFI’s next semi-annual classification exercise.
• The estimated large-cap threshold could rise to around ₹1.12 lakh crore from ₹1.06 lakh crore, while the mid-cap threshold may increase to about ₹36,700 crore.
• The projections are estimates and not an official AMFI classification; AMFI’s final list will depend on the prescribed market-cap data.

Jio Platforms, National Stock Exchange of India, Lenskart Solutions, LG Electronics India and three other companies could enter the large-cap universe when the Association of Mutual Funds in India carries out its next market-cap categorisation, according to early estimates by Nuvama Alternative Research.

Nuvama expects the large-cap cut-off to rise to around ₹1.12 lakh crore from approximately ₹1.06 lakh crore at the previous classification point. The estimated mid-cap threshold is around ₹36,700 crore, against roughly ₹33,600 crore earlier.

The seven names identified as potential large-cap entrants are Bosch, Zydus Lifesciences, Lodha Developers, Lenskart Solutions, LG Electronics India, Jio Platforms and NSE. Jio Platforms and NSE would be new entrants to the large-cap classification rather than stocks migrating from the existing mid-cap list.

At the other end, Nuvama expects Godrej Consumer Products, Ambuja Cements, Indus Towers, Vedanta, Tata Consumer Products, Indian Railway Finance Corporation and HDFC Asset Management Company to be potential candidates for reclassification from large-cap to mid-cap. The mid-cap universe could also see several changes involving companies such as Ather Energy, RBL Bank, Gland Pharma and PhysicsWallah.

Under the framework used for mutual fund scheme categorisation, the first 100 companies by full market capitalisation are treated as large caps, companies ranked 101 to 250 as mid caps, and those ranked 251 onwards as small caps. AMFI prepares the stock list in line with SEBI's framework and updates the classification every six months using market data at the end of June and December.

The distinction matters for mutual funds whose mandates prescribe exposure to specific market-cap segments. A change in classification can alter the investment universe available to large-cap, mid-cap and small-cap schemes.

The current list remains a forecast, however. The eventual AMFI categorisation may differ depending on market capitalisation levels at the applicable cut-off date.