Yes Bank including four other firms- Adani Enterprises, PI Industries, Hindustan Aeronautics, and Jubilant Food-Works – are likely to urge upgraded as a part of the half-yearly market-cap categorization by open-end fund industry body AMFI, which is predicted to release a fresh list by January 5, consistent with brokerages.
According to a report within the Economic Times, ICICI Securities has assigned a high probability to the primary four and a coffee probability for Jubilant FoodWorks for getting upgraded to corporation stock.
Worth mentioning here is that AMFI categorises stocks into large caps, mid caps and little caps supported the typical market capitalization every six months. open-end fund schemes are required to align their portfolios supported the share categories.
ICICI Securities said it expects 4-5 switches between large caps and mid-caps and 11-12 switches between midcaps and little caps.
The lower end of the dimensions limit for giant caps and midcaps have increased to Rs 27,600 crore and Rs 8,200 crore respectively supported market data for the last half of 2020 available thus far , said ICICI Securities.
As per a Sebi circular dated October 6, 2017, mutual funds have one month to align their portfolios as per the fresh list.
MRF, NMDC, United Breweries, Container Corporation, General Insurance, and Bank of Baroda could also be recategorized as midcap from large-cap, the brokerage said.
Meanwhile, Laurus Labs, IndiaMart InterMesh, Navin Fluorine, Dixon Technologies, Alok Industries, AstraZeneca Pharma, Deepak Nitrite, Bombay Burmah, and Suven Pharma are likely to be recategorized as mid-cap from small-cap, said ICICI Securities.
If Yes Bank shares get upgraded to large-cap needless to say, then the stock may witness buying from mutual funds, experts say. As of 10:25 am, Yes Bank shares traded 8.89% higher at Rs 17.15 apiece, outperforming the Sensex, which was up 0.63%.