look news india
Due to the recent exercise by the Association of Mutual Funds in India (AMFI), the m cap limit to qualify as large cap and mid cap stocks has been increased from Rs. 84,325 crores to Rs. 27,564 crores.
Earlier such rebalancing was done in December, 2023 when the limits were Rs. 67,000 crores and Rs. 22,000 crores respectively. Thus, the current rebalancing has increased the limit by about 25 per cent, which is attributed to the unprecedented rally in the Indian stock market in the last six months.
In the first six months of 2024, the Indian stock market's major index Nifty has gained 10.5 per cent while the Sensex has gained 9.4 per cent. In the same period, mid-cap and small-cap stocks performed better, with the BSE mid-cap and small-cap indices gaining 25 per cent and 22 per cent respectively. Therefore, the market of different companies
There has also been a significant increase in capitalization, in view of which AMFIA has also increased the threshold limit for large cap and mid cap stocks. As per the norms set by the Securities and Exchange Board of India (SEBI), the top 100 companies with the highest market capitalization among all listed companies are considered large cap companies, while the next 150 companies, i.e. companies ranked 101 to 250, are considered mid-cap companies. The rest of the companies are included in the small cap segment. When this rule was implemented in 2017, the threshold limit for large cap stocks was Rs. 27,000 crore while for mid cap it was Rs. 8,500 crore.