According to predictions by Nuvama Alternative Research, the Association of Mutual Funds in India (AMFI) may reclassify Rail Vikas Nigam (RVNL) and Suzlon Energy as large-cap stocks starting February 2025.

What Happened: Currently classified as mid-cap stocks based on a threshold of ₹27,500 crore, the two companies are expected to meet the revised large-cap cut-off, which is projected to rise to around ₹1 lakh crore from ₹84,000 crore based on current average market-cap levels, the brokerage said.

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RVNL and Suzlon Energy have both surpassed the anticipated large-cap threshold, with market capitalisations of ₹1.06 lakh crore and ₹1.05 lakh crore, respectively. Over the past year, shares of Suzlon Energy surged by 183%, while RVNL’s share price has recorded a 196% increase.

This recategorisation reflects the rapid growth of these companies and their potential inclusion among the large-cap stocks, a move closely watched by market participants.

On the other hand, Adani Total Gas Ltd, IDBI Bank, Union Bank of India, BHEL and Canara Bank can be downgraded to a midcap category.

Despite the reclassification, the report suggests that this shift will not necessarily lead to fresh inflows or outflows in these stocks, as active equity fund managers continuously monitor the AMFI list to adjust their positions in various fund categories accordingly.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.