AMFI large-cap cut-off likely to rise 15% to ₹1.05 lakh crore

The assessment period runs from July 1 to December 31, with the final list expected in early January and effective from February 1.

The cut-off for large-cap stocks in the semi-annual AMFI categorisation of stocks is expected to increase by 15 per cent to ₹1.05 lakh crore, up from ₹91,600 crore in the June quarter, largely due to the spurt in equity markets over the last two months.

The mid-cap cut-off will increase 13 per cent to ₹34,800 crore (₹30,700 crore) based on average market-cap levels as of December 3, according to Nuvama Alternatives Research.

The cut-off for assessing the companies’ market capitalisation will be between July 1 and December 31. AMFI is expected to announce the final list in the first week of January, with the final categorisation taking effect from February 1.

Fund manager view

Abhilash Pagaria, Head – Alternative & Quantitative Research, Nuvama Institutional Equities, said the AMFI stock categorisation list is primarily used by active equity mutual fund managers.

“Changes in categorization 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,” he said.

Likely upgrades and downgrades

Potential large-cap entrants from mid-cap include Muthoot Finance, HDFC AMC, Canara Bank, Bosch, Cummins India, Polycab India, Hero MotoCorp, while the new entrants from recent IPOs include Tata Capital, ICICI Prudential MF, Tata Motors – CV and LG Electronics India.

The downgrades from large to mid-caps include Info Edge, Lupin, Bajaj Housing Finance, Havells India, Zydus Lifesciences, REC, Indus Towers, United Spirits, Mankind Pharma, Jindal Steel & Power and Shree Cements.

Mid-cap additions

The potential mid-cap entrants include Endurance Technologies, Poonawalla Fincorp, and Apar Industries, while new entrants from IPOs may include Billionbrains Garage (Groww), Lenskart Solutions, HDB Financial Services, Meesho, Anthem Biosciences and PhysicsWallah.

Small-cap entrants

A host of 74 companies, including NSDL, JSW Cement, Canara HSBC Life Insurance, Canara Robeco AMC, Anand Rathi Shares, Urban Company, Orkla India, Vikram Solar and Kalpataru, will make their debut in the small-cap space.

REIT reshuffle

Some of the REITs that may enter mid-cap include KRT and Embassy, while Mindspace, Nexus and Brookfield may find a place in the small-cap segment.

Neelesh Surana, Chief Investment Officer, Mirae Asset Investment Managers (India), said India enters 2026 with a stronger equity market setup, supported by robust macroeconomic fundamentals, pro-growth fiscal and monetary measures, and GDP growth expected to remain above 7 per cent.

Earnings growth is likely to return to a double-digit trajectory post a muted FY26, driven by improving demand, tax cuts and monetary easing, he said

With valuations now reasonable and market dispersion low, diversified portfolios are well-positioned to benefit, offering opportunities across sectors. Additionally, the growing presence of high-quality, sector-leading companies within the mid and small-cap space makes a strong case for meaningful allocation.”

Published on December 22, 2025