AMFI’s Latest Stock Categorization: Unpacking Large, Mid & Small Cap Shifts

Financial Report

Market Cap Cutoffs Fall in Latest Stock Categorization :- In the recent stock categorization, the Large Cap cutoff for average market capital over last 6 months has declined to ₹91,500 Cr from ₹1 Lakh Cr. Similarly, the Mid Cap cutoff for average market capital over last 6 months has decreased to ₹30,700 Cr from ₹33,000 Cr, as observed in the first half of calendar year 2025.

AMFI’s Latest: 11 Stocks Elevated to Large Cap :- In the latest AMFI stock categorization, ten stocks have been upgraded from Mid Cap to Large Cap, including Apollo Hospitals, Jindal Steel & Power, Lupin, Max Healthcare, Mazagon Dock, Shree Cement, Solar Industries, Indian Hotels Co. and Union Bank of India. Siemens Energy India, a demerged entity, has also been newly added to the Large Cap category based on market capitalization.

Falling Market Cap Cutoffs Highlight Sluggish Market Momentum in Early 2025:- The drop in Large and Mid Cap cutoffs in AMFI’s latest categorization stems from a market cool-off in Jan–Jun 2025 after a strong rally in late 2024. Early 2025 was impacted by profit booking, cautious post-election sentiment and global headwinds including renewed geopolitical tensions, inflation concerns and delays in US Fed rate cuts. However, the high base of H2CY24 made it challenging for markets to sustain momentum. Adding to the pressure was the escalation of trade tariff tensions under Donald Trump’s new administration, which triggered risk-off sentiment among global investors. FII outflows and rotation away from overvalued mid and small caps into safer assets further compressed average market caps, resulting in lowered categorization cutoffs.

Key Downgrades: 11 Stocks Move from Large Cap to Mid Cap :- On the flip side, eleven stocks have been downgraded from the Large Cap to the Mid Cap category. This list includes Bosch, Cummins India, Dabur, Hero MotoCorp, ICICI Prudential Life Insurance, Indian Overseas Bank, JSW Energy, NTPC Green Energy, Polycab, Rail Vikas Nigam and Swiggy.

Small to Mid Cap Upgrades Gain Momentum:- In the latest AMFI stock categorization, nine stocks have been upgraded from Small Cap to Mid Cap after their average market capitalization over the last 6 months exceeded ₹30,700 crore. This list includes Authum Investment & Infrastructure, Cholamandalam Financial Holdings, Global Health, Godfrey Phillips India, K.P.R. Mill, Laurus Labs, MCX, Narayana Hrudayalaya and Radico Khaitan. Additionally, demerged entity ITC Hotels and IPO stock Hexaware Technologies have been newly added to the Mid Cap list.

Mid to Small Cap Downgrades Reflect Market Pressure:- Meanwhile, twelve stocks were downgraded from Mid Cap to Small Cap as their 6-month average market capitalization fell below ₹30,700 crore. This includes Aditya Birla Fashion, Apar Industries, Deepak Nitrite, Endurance Technologies, Indraprastha Gas, Inventurus Knowledge Solutions, IRB Infra, OLA Electric Mobility, Punjab & Sind Bank, Syngene International, Tata Technologies and The New India Assurance Company.

Fresh Entrants: 61 New Stocks Join AMFI Categorization in H1CY2025:- Net 61 new stocks have been added to the AMFI stock categorization list in the first half of calendar year 2025.

For a comprehensive understanding and more insights, please go through our detailed report.

June Market Pulse: Monthly Investment Insights

Financial Report

Sector Shuffle: FPIs Load Up on Financials & Oil, Trim Power & FMCG

Sectors in Demand: FPIs Chase Financials, Oil & Auto in June

• Financial Services led FPI inflows in June with a hefty ₹8,946 Cr, closely followed by Oil & Gas at ₹6,137 Cr, signaling strong confidence in India's core sectors. A sharp turnaround was seen in Automobiles and Telecommunication, where early exits flipped into aggressive second-half buying, resulting in net inflows of ₹4,724 Cr and ₹2,733 Cr respectively.

• Chemicals also drew steady interest with ₹2,392 Cr, while Consumer Services witnessed renewed traction, ending with ₹1,348 Cr. FPIs added ₹910 Cr in Realty and showed a mild positive stance on IT, with net inflows of ₹1,166 Cr, reversing early selling pressure.

FPIs Exit Power, FMCG & Durables in June

• Power led the FPI outflows in June with a sharp withdrawal of ₹6,311 Cr, followed by FMCG where net selling amounted to ₹3,985 Cr, reflecting profit booking in defensives. Consumer Durables saw an outflow of ₹2,493 Cr, while Capital Goods faced net selling of ₹1,831 Cr as FPIs rotated away from cyclical exposures.

• Diversified sectors witnessed net withdrawals of ₹1,162 Cr, while Healthcare and Metals & Mining saw outflows of ₹1,092 Cr and ₹1,016 Cr respectively. Construction too saw mild selling pressure with FPIs pulling out ₹748 Cr, suggesting a broader recalibration of sectoral positions.

FPI Buying Back on Track with IPO Push

• FPIs Stay in Buy Mode for 3rd Straight Month: Foreign Portfolio Investors (FPIs) turned net buyers in June, with ₹14,590 Cr equity inflows, marking their third consecutive month of investment. While the first half saw mild outflows, aggressive second-half buying of ₹19,991 Cr — including ₹6,124 Cr in primary markets (IPOs) — helped reverse the trend and boost sentiment.

• Debt Outflows Deepen Amid Global Rate Worries: FPIs pulled out ₹22,527 Cr from Indian debt in June, including ₹5,996 Cr from corporate bonds, as US Fed uncertainty and elevated global yields weakened the appeal of Indian fixed-income assets.

• YTD Snapshot: FPIs remain net equity sellers on a year-to-date basis, with total outflows of ₹77,901 Cr, while debt investments have declined to ₹14,121 Cr during the same period.

DII Inflows Surge in June

• DIIs Record One of the Strongest Monthly Buys: Domestic Institutional Investors (DIIs) maintained their bullish momentum, investing a staggering ₹72,674 Cr into equities in June, surpassing the ₹67,642 Cr seen in May. Both halves of the month witnessed robust participation, driven by long-term conviction and domestic economic resilience. For the calendar year to date, DIIs have infused over ₹3.57 Lakh Cr into equities, firmly cementing their position as the market’s stabilizing force during turbulent times.

Mutual Funds Slow Down but Stay Positive in Equities

• Mutual Funds Cool Off After May Frenzy: Mutual Funds poured ₹45,519 Cr into equities in June, easing slightly from their robust ₹56,302 Cr inflow in May. While the buying spree continued, the pace moderated in the second half of the month, hinting at profit booking and tactical realignment by fund managers. Cumulatively, Mutual Funds have contributed a significant ₹2.39 Lakh Cr in equities in 2025 so far, underlining steady SIP-driven flows.

FPI Holdings Jump ₹2.8 Lakh Cr in June, Cross ₹80 Lakh Cr for First Time in 2025

• Total Foreign Portfolio Investors AUC( Assets Under Custody) rose to ₹80.83 Lakh Cr in June, up from ₹78.03 Lakh Cr in May, marking a monthly increase of ₹2.8 Lakh Cr. The surge was primarily driven by equity AUC, which jumped from ₹71.26 Lakh Cr in May to ₹74.19 Lakh Cr in June — an addition of nearly ₹2.93 Lakh Cr, reflecting strong market performance and inflows.

• Debt segments (General, VRR, FAR) saw a marginal decline, especially Debt FAR, down from ₹2.68 Lakh Cr to ₹2.54 Lakh Cr, in line with the June net debt outflow by FPIs. Despite muted flows in debt, the overall AUC crossed the ₹80 Lakh Cr mark for the first time in CY25.

• Over H1CY25, FPI total AUC increased by ₹3.18 Lakh Cr, from ₹77.64 Lakh Cr in December to ₹80.83 Lakh Cr in June. The growth was led by equities, which contributed the bulk of the gain — rising ₹2.99 Lakh Cr over the six-month period.

For a comprehensive understanding and more insights, please go through our detailed report.

Trends in Mutual Fund Average AUM: Apr-Jun, 2025

Financial Report

Mutual Fund Industry Average AUM Scales Fresh Peak at ₹72.14 Lakh Cr in Q1FY26

• Record High AUM on Equity Market Rally: The average AUM of the mutual fund industry surged by 7% quarter-on-quarter to an all-time high of ₹72.14 Lakh Cr during the April–June 2025 quarter. This growth was largely driven by strong equity market gains, especially in the midcap and smallcap segments, which rallied over 10%. For the first half of CY2025, the MF industry recorded a 5.13% increase in average AUM, supported by record SIP inflows and sustained bullish momentum in equities.

• SBI Mutual Fund Hits Record AUM of ₹11.40 Lakh Cr in Q1FY26 : SBI Mutual Fund achieved a historic milestone by reaching an average AUM of ₹11.40 Lakh Cr during the April–June 2025 quarter. This marks the 22nd consecutive quarter that SBI Mutual Fund has retained its position as the largest fund house in India, underscoring consistent investor confidence and sustained market leadership.

• Equity Rally Lifts AUM of Top Fund Houses: Driven by gains in the equity markets, leading equity-oriented fund houses witnessed strong AUM growth in the April–June 2025 quarter. SBI Mutual Fund recorded the highest absolute increase in average AUM, followed closely by ICICI Prudential, Nippon India and HDFC Mutual Fund.

• Top Fund Houses Maintain Stability; Mirae Rejoins Elite Club: The mutual fund industry continues to reflect strong structural stability, with the top 3 and top 8 fund houses retaining their positions for an impressive 16 consecutive quarters. In a key development this quarter, Mirae Asset Mutual Fund made a comeback into the top 10 rankings, overtaking Tata and DSP Mutual Funds. Conversely, Tata Mutual Fund slipped out of the top ten in terms of average AUM, marking a notable reshuffle in the industry leaderboard.

• Rising Stars in Mutual Funds: Mirae, Invesco, PPFAS and Trust Mutual Fund have climbed the ranks, marking strong progress over previous quarters.

• Top Gainers by Percentage: Emerging AMCs Post Stellar AUM Growth - In the April–June 2025 quarter, several emerging and mid-sized AMCs—including Angel One, Unifi, Old Bridge, Zerodha, Trust, Groww, WhiteOak Capital, Helios, Bajaj Finserv, PPFAS and Motilal Oswal Mutual Fund—delivered stand out percentage growth in average AUM. This surge reflects their accelerating momentum and increasing investor traction, building on strong performance and expanding distribution in recent quarters.

• 19 AMCs Now Manage Over ₹1 Lakh Cr Each in Average AUM - As of the April–June 2025 quarter, 19 of the 46 active mutual fund houses have reported average AUM above ₹1 lakh crore. This milestone highlights the increasing scale and deepening consolidation within the Indian mutual fund industry.

• New Entrants Signal Growing Interest in MF Industry - The mutual fund industry witnessed the entry of new players in the April–June 2025 quarter, with Jio BlackRock Mutual Fund and Capitalmind Mutual Fund officially commencing operations. In addition to these, several other asset management companies have received SEBI’s approval and are in the process of launching their offerings. This wave of new entrants reflects the growing interest in the Indian asset management space and underscores the sector’s ongoing expansion and increasing competitiveness.

For a comprehensive understanding and more insights, please go through our detailed report.

Download the full analysis for insights across all Mutual Fund AMCs.

Fixed Income Pulse – June's Debt Market Snapshot & Debt MFs Insights

Financial Report

June saw increased volatility in the debt market post-policy, crude oil swings driven by geopolitical tensions, banking system liquidity at a three-year high, and the rupee remaining resilient amid a softening dollar backdrop.

Money Market and Low Duration Funds led the sub-1-year segment, posting strong 3-month annualised returns of 8.58% and 8.88% on elevated short-term rates and active positioning.

Short to Medium Duration funds and Credit Risk funds posted strong 3–12 month returns, reflecting favourable accrual and duration positioning.

Domestic bond yields rose sharply in June, with the 10-year benchmark climbing 9 bps, reversing the softening trend observed in May.

Liquidity conditions remained comfortably surplus in June, with rising systemic liquidity prompting calibrated RBI interventions to manage short-term rates and absorb excess funds.

The Indian rupee ended June marginally lower, underperforming Asian peers amid muted inflows and structural external imbalances, though it rebounded from late-month geopolitical-driven lows.

The attached snapshot covers all these developments, along with mutual fund performance trends across categories.

We believe the insights will help you stay informed and aligned with the evolving macro and market landscape.

Click below to read the full snapshot attached.

Events in July 2025

Upcoming Events

Please click on the link below for detailed information