Newly listed stocks could be developed from a wide range of insurance sectors, food security, the optional industry, automotive, and transportation, says ICICI Securities.
In the next size section of the Association of Mutual Funds in India (AMFI), six shares may be upgraded to midcap from a small cap and five midcap shares may receive a larger status, while five shares have recently been listed, including Life Insurance. India Corporation. (LIC), can be developed into a large capsule and midcap.
AMFI’s annual quarterly stocks list will process data from January-June 2022 and the final list will be disclosed in early July.
The five potential stocks from the major sector are Adani Power, Cholamandalam Investment & Finance, Bank of Baroda, Hindustan Aeronautics, and Bandhan Bank, ICICI Securities said. Tata Teleservices (Maharashtra), KPR Mill, Tanla Platforms, Poonawalla Fincorp, Phoenix Mills, and SKF India may be switched to midcap from smallcap.
The consumer company sees a high chance of progressively developing in the above stocks but it is unlikely that Chambal Fertilizers will get a midcap mark against its current to smallcap rating.
Surprisingly, the type of stock that will be developed from small to medium to large does not reflect a risk-free environment as most of them fall under the cyclic and highly profitable sectors such as finance and industry. said the research company.
While looking at these conditions, ICICI Securities has taken data from the beginning of January this year to date, and prices are expected to not deviate significantly from the current levels in the next two days.
With market reforms in all segments this year, the market capitalization has dropped to less than $ 2 billion.
Midcap and smallcap high market capitalization fell to $ 5.4 billion and $ 1.9 billion, respectively, with Nifty Midcap100 and Nifty Smallcap250 adjusting 14 percent and 15 percent, respectively, from January 2022. ICICI Securities said.
On the other hand, the amount of stocks that can be reduced from midcap to smallcap and large-cap to midcap is expected to be higher than improvement. Other small reductions from growth, quality, and buckets for self-defense. ICICI Securities said.
According to its research, IDBI Bank, HDFC AMC, Godrej Properties, SAIL, Zydus Lifesciences, Jubilant Foodworks, and PB Fintech may be downgraded from Great cap to midcap.
Shares may be downgraded from midcap Sanofi India, Ajanta Pharma, Aptus Value Housing Finance, Alkyl Amines, Gujarat State Perronet, Happiest Minds Technologies, IndiaMART InterMESH, GR Infraprojects, Natco Pharma, UCO Bank, Aditya Birla Sun Life AMC Company Nuvoco Vistas Corporation
Among them, four shares – Sanofi India, Ajanta Pharma, Aptus Value Housing Finance, and IDBI Bank – have lower AMFI downtime, and others have higher chances, the research house said.
AMFI will review the average market capitalization between January and June 2022 to reclassify stocks (top 100 stocks in market capitalization), midcap (101st to 250th), and lower coins (below 250 level).
New listed stock could be developed from the insurance association, the basic, desirable, automotive, and transportation sectors, according to a study by ICICI Securities.
The Life Insurance Corporation of India, along with Adani Wilmar may be upgraded to a major one, while shares may see improvements in midcap Delhivery, Vedant Fashions, and Motherson Sumi Wiring India. said the research house.
The re-evaluation comes at a time of turmoil. The first six months of the calendar year were marked by high volatility in the stock markets, and the emergence of a foreign investment portfolio.
The BSE Sensex and Nifty50 fell by almost 9 percent, weighed down by the Ukraine-Russia war, inflationary pressures, rapid policy tightening by central banks around the world, and external financial institutions (FII).
Wide markets are seeing major adjustments, the Nifty midcap 100 index is down more than 12 percent, and the smallcap 250 is down 17 percent this year. FIIs have sold shares worth more than Rs 2.8 lakh crore in the first six months of 2021, to date.
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