Cyclical, digital stocks set for mass rating upgrades; these shares to benefit from AMFI rejig

DHFL stock tanks 10%, hits lower circuit; experts warn sell now, stay away, relisting prospects unclear

The heavy trading and delivery volumes in DHFL stock yesterday showed that investors were still buying the stock, some of them hoping to extract some value when the stock re-lists.

The reclassification of all listed companies is done semi-annually. (Image: REUTERS)

Upcoming reclassification of shares by the Association of Mutual Funds in India (AMFI), may see cyclicals and digital stocks take centre stage. Domestic brokerage and research firm ICICI Securities said that cyclicals such as industrials and lenders along with scrips inclined to the digital domain could be upgraded by AMFI. The reclassification of all listed companies is done semi-annually. AMFI is expected to announce the changes in the first week of July. Based on the revised list released by AMFI, fund houses rejig their portfolios to match the fresh classifications.

“Cyclicals and digital stocks to dominate the upgrade list. Overall 20 stocks could potentially get upgraded. Of the above 20 stocks, 14 belong to cyclicals (industrials and lenders) while 5 belong to the digital domain (platform, e-commerce or niche digital technology), and one defensive (healthcare),” ICICI Securities said. AMFI takes the average market capitalization of all stocks between January 2021 and June 2021 to rejig the classification. Companies with the highest market capitalization are categorised as large-caps, the next 150 are classified as midcaps and the remaining as smallcaps.

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ICICI Securities said that the upper limit for stocks to qualify as midcaps has crossed an all-time high of$5 billion, as last seen during May 2018. The upper threshold for small caps is at $1.6 billion still below the level seen in January 2018 level.

Midcap to largecap switch

Adani Total Gas Ltd – Average market cap Rs 878 billion – High probability
NMDC – Average market cap Rs 412 billion – High probability
Apollo Hospitals Enterprise – Average market cap Rs 421 billion – High probability
Cholamandalam Investment & Finance Company – Average market cap Rs 420 billion – High probability
SAIL – Average market cap Rs 359 billion – High probability

Largecap to midcap

Abbott India – Average market cap Rs 320 billion – High probability
Hindustan Aeronautics – Average market cap Rs 332 billion – High probability
Alkem Laboratories – Average market cap Rs 343 billion – High probability
HPCL – Average market cap Rs 352 billion – High probability 

Gold Price Today, 9 June 2021: Yellow metal firms on positive global cues; check support, resistances

Gold Rate Today, Gold Price in India on 9 June 2021: Gold prices edged marginally higher in India on Wednesday, following global rates as a fall in US bond yields supported yellow metal prices.

Smallcap to midcap

Tata Elxsi – Average market cap Rs 180 billion billion – High probability
APL Apollo Tubes – Average market cap Rs 142 billion – High probability
Kajaria Ceramics – Average market cap Rs 142 billion – High probability
Bank of Maharashtra – Average market cap Rs 135 billion – High probability
Apollo Tyres – Average market cap Rs 139 billion – High probability
Indian Bank – Average market cap Rs 132 billion – High probability
Alkyl Amines Chemicals Ltd – Average market cap Rs 124 billion – High probability
Affle (India) – Average market cap Rs 128 billion – High probability
Linde India – Average market cap Rs 127 billion – High probability
Blue Dart Express Ltd – Average market cap Rs 117 billion – High probability
Vaibhav Global – Average market cap Rs 117 billion – High probability
Hindustan Copper – Average market cap Rs 112 billion – High probability

Midcap to smallcap

IIFL Wealth Management – Average market cap Rs 101 billion – High probability
Central Bank of India – Average market cap Rs 97 billion – High probability
Godrej Agrovet – Average market cap Rs 99 billion – High probability
Motilal Oswal Financial Services – Average market cap Rs 95 billion – High probability
Astrazeneca Pharma India – Average market cap Rs 93 billion – High probability
Bombay Burmah Trading Corporation – Average market cap Rs 84 billion – High probability
Granules India – Average market cap Rs 83 billion – High probability


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Blackstone-backed Sona BLW Rs 5,550-crore IPO opens June 14; firm announces price band

Sona BLW Precision Forgings’ (Sona Comstar) Rs 5,550-crore initial public offering (IPO) will open for subscription on June 14, 2021, at a price band of Rs 285-291 per share.