IRFC, PFC to be categorised as largecaps; Suzlon to become a Midcap stock

State-run companies like Power Finance Corporation (PFC), IRFC and seven other companies will be classified as "largecap" companies from their earlier classification of "midcap," according to data released by the Association of Mutual Funds in India (AMFI).

Other stocks which will now be classified as largecap stocks include Macrotech Developers, Polycab, REC, Shriram Finance, Union Bank of India, Indian Overseas Bank and the recently listed Jio Financial Services will also be classified as "largecap" stocks.

On the other hand, stocks like UPL, Adani Wilmar, PI Industries and six others have been downgraded to the "Midcap" category from their earlier classification of "largecap."

IRCTC, Bosch, Tube Investments, Samvardhana Motherson and Hero MotoCorp will now be classified as "Midcap" stocks from the "largecap" classification earlier.

Other state-run names like Mazagon Dock, SJVN along with stocks like Suzlon have been categorised as "Midcap" stocks from the earlier "Smallcap" classification. Other names that have been promoted into Midcap category include Lloyds Metals, Kalyan Jewellers, KEI Industries, CreditAccess Grameen, Exide, Nippon Life AMC, Ajanta Pharma, Narayana Hrudayalaya and Glenmark Pharma.

New entrants in the Midcap category include names like Tata Technologies, JSW Infra and IREDA, all of which are recent listings.

Other stocks like Pfizer, Vinati Organics, Atul, Whirlpool, Sumitomo Chemicals, Laurus Labs, Aditya Birla Fashion, Bata, Bharat Dynamics have been downgraded from the "Midcap" category to the "Smallcap" category.

Brokerage firm Nuvama Alternative & Quantitative Research said that the change in categorisation will not necessarily result in incremental inflows and outflows.

"Active equity fund managers may choose to add / remove, increase / reduce weightage in the stocks from their respective portfolio, depending upon the fundamental, non-quantitative rationale," the Nuvama note said.