20 Stocks which have been Re-Categorized (Small Cap to Mid Cap & Mid Cap to Large Cap) in the Indian Stock Exchange in 2019 based on Market Cap

On 1st January 2019, SEBI re-categorized its stocks again. After that some promotions and some demotions have taken place in the large cap, mid cap and small cap companies.

Market Cap Classification

  • Large Cap – Top 100 Stocks based on Last Six Months Average Market Cap
  • Mid Cap – 101-250 Stocks based on Last Six Months Average Market Cap
  • Small Cap – Beyond 250 Stocks

Every six months SEBI releases a new list of this categorized companies, so that the mutual funds can invest according to their categories. That is large cap fund should invest 80% in large cap stocks, multi cap funds can invest across the categorization, mid cap funds should have minimum allocation of 65% in mid cap companies and small cap funds too similarly.

In this new list, some companies have been promoted and some have been demoted based on the average market cap from the period of 1st July 2018 to 31st December 2018.

Companies that got Promoted from Mid Cap to Large Cap

CompanyAvg. Market Cap (Rs. Crore)
Divis Lab34,975
United Breweries33,095
Page Industries32,702
Indiabulls Ventures Ltd31,823
L&T Infotech Ltd30,206
Berger Paints India Ltd29,939
GSK Consumer Healthcare Ltd29,660

The companies on this list used to be mid cap companies earlier which now are large cap companies. These are the average market cap of the companies from the period of 1st July 2018 to 31st December 2018. Though their market now maybe different but these are their average market caps for the above period.

L&T Infotech Ltd gained advantage because of the rupee depreciation rally that took place last year. And the run that IT companies experienced in the last year also benefited L&T Infotech Ltd.

The fluctuations in the crude oil prices has benefited Berger Paints India Ltd. The dollar has dropped from 85 dollars to almost 50 dollars which has helped Berger Paints India Ltd.

The merger of GSK Consumer Healthcare Ltd with Hindustan Unilever Ltd was a very positive news for GSK Consumer Healthcare Ltd.

Companies that got Promoted from Small Cap to Mid Cap

CompanyAvg. Market Cap (Rs. Crore)
Bata India Ltd12,550
Schaeffler India11,412
Alembic Pharma11,047
Aarti Industries10,818
Solar Industries9,834
Mahindra CIE Automotive Ltd9,826
Atul Ltd9,390
Ipca Lab9,312
Relaxo Footwears9,305
Phoenix Mills9,203
Gujarat Flurochemicals9,110
SKF India9,094
Thomas Cook8,856

The companies on this list used to be small cap companies earlier which now are mid cap companies. These are the average market cap of the companies from the period of 1st July 2018 to 31st December 2018. Though their market now maybe different but these are their average market caps for the above period.

Bata India & Relaxo Footwears, both of the huge footwear companies have been promoted. Both the companies have very good focus in India and these companies should be in the radar of any investor.

Now the companies in this list have been opened to up to new investments in them, which may be a very good sign for them as the allocations to these stocks can be increased.

Companies that got Demoted from Large Cap to Mid Cap

  1. Hindustan Aeronautics Ltd
  2. Bharat Forge Ltd
  3. Shriram Transport Finance Company Ltd
  4. Sun TV Network Ltd
  5. Aditya Birla Capital Ltd
  6. BHEL
  7. TVS Motors
  8. Bharat Electronics Ltd

Companies that got Demoted from Mid Cap to Small Cap

  1. Future Consumer Ltd
  2. Reliance Power
  3. Dilip Buildcon
  4. JM Financial Ltd
  5. Prestige Estates Projects
  6. Arvind Ltd
  7. Sun Pharma Advance Research Company
  8. Finolex Cables
  9. Reliance Capital
  10. KRBL
  11. Engineers India
  12. Symphony
  13. TV18 Broadcast
  14. Rain Industries
  15. Avanti Feeds Ltd
  16. Vakranjee Ltd
  17. PC Jeweller Ltd

8 thoughts on “Re-Categorization of Stocks in Indian Share Market based on Market Cap (Upgrade and Downgrade)

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.