Nine companies are strong contenders to be reclassified as largecap stocks by the Association of Mutual Funds in India (AMFI), according to an analysis by Equirus Securities. This semi-annual review, which concludes on June 30, 2026, could significantly impact mutual fund portfolios as fund managers adjust their holdings.
Key Companies Eyeing Largecap Status
Among the high-probability candidates for an upgrade to the largecap category are prominent names such as Vodafone Idea Ltd (VIL), BSE Ltd, and Billionbrains Garage Ventures Limited (Groww). Other firms identified by Equirus Securities include Indian Bank Ltd, Vedanta Aluminium Metal Ltd, BHEL, Jindal Steel, Hitachi Energy Ltd, and Indus Towers Ltd.
The reclassification is closely monitored by active mutual fund managers, who must rebalance their portfolios by August 1 based on the new list. This adjustment is crucial as scheme categories dictate the types of stocks funds can invest in.
Expected Shifts Across Categories
While nine stocks are anticipated to move from midcap to largecap, Equirus Securities also forecasts that eight stocks will transition from the largecap to the midcap category. Companies likely to see a downward revision to midcap status include Lodha, Max Healthcare, Indian Hotels Company Ltd, and Mazagon Dock.
Separately, Nuvama Institutional Equities had also previously indicated similar expectations, forecasting Mazagon Dock Shipbuilders Ltd, Lodha Developers, Indian Hotels, and Max Healthcare Institute among others, to shift from largecap to midcap. Additionally, Nuvama suggested that stocks like Hindustan Copper, NLC India Ltd, and Ajanta Pharma could enter the midcap list, while Kaynes Technology India and SJVN might slip from midcap to smallcap.
Post-Vedanta's de-merger, only Vedanta Aluminium Metal is expected to qualify for largecap, with its other three entities likely to be classified as smallcap. The updated list of large, mid, and smallcap classifications is expected to be released in the first week of July, providing clarity for market participants.