Stocks Edelweiss Expects To Be Added Or Excluded From Large- And Mid-Cap Categories
A trader signals a contract price during trading in Taiwanese stock index futures. (Photographer: Jonathan Drake/Bloomberg News)

Stocks Edelweiss Expects To Be Added Or Excluded From Large- And Mid-Cap Categories

A mix of energy and pharma stocks is likely to be included among India’s top 100 companies by market value, while select financials may be excluded as part of a SEBI-mandated reclassification.

Abbott India Ltd., Cadila Healthcare Ltd. and Indraprastha Gas Ltd. are among the few to be included in the large caps. Piramal Enterprises Ltd., Rural Electrification Corp. Ltd. and Oracle Finance may be excluded from the category, according to Edelweiss Alternative Research.

The Securities and Exchange Board of India mandates reclassification of stocks based on market capitalisation every six months and mutual funds have to realign schemes within a month. The changes will be effective from July to December 2020.

Based on the average market value in the past six months, the stocks are classified into three categories:

  • Large Cap: First 100 companies by market value
  • Mid Cap: Companies ranking 101-250
  • Small Cap: Ranked 251 onwards

According to Edelweiss Alternative Research, here are the stocks that are likely to be included or excluded from the large and mid caps:

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