Cyclical, Digital Stocks To Dominate Upgrades In Upcoming AMFI Size Reclassification: ICICI Securities

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ICICI Securities Report

The upcoming Association of Mutual Funds in India reclassification of stocks based on size will take into account average market capitalisation for the period January-June 2021 for reclassifying stocks into large, mid and small caps (large: top 100, mid: 101-250, and small: below 250th rank on market capitalisation).

Based on the data available since January 2021 till now and assuming prices will not deviate a lot from current levels during June-21, we observe the following trends:

• Overall 20 stocks could potentially get upgrades (seven from mid to large, and 13 from small to mid).
• Of the above 20 stocks, 14 belong to cyclicals (industrials and lenders) while five belong to digital domain (platform, e-commerce or niche digital technology), and one defensive (healthcare).

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