While 19 stocks earned promotions—10 midcaps graduated to the largecaps category and nine smallcaps to midcaps—23 underperformers felt the sting of downgrades.
Amfi’s latest reshuffle, based on average market capitalization between January and June, highlights India’s evolving market landscape, where sectors like hospitality, healthcare, and defence are gaining investor favour even as automobile, energy, and information technology stocks slip down the ranks.
The reclassification arrives as global markets endure a bumpy ride, chiefly because of global trade tensions triggered by US President Donald Trump’s policies.
Yet, India’s benchmark Nifty 50 index has defied the headwinds, rising by over 8% in the first six months of 2025, highlighting robust investor optimism.
“Amfi’s reclassification process reflects a growing focus on relative strength. Even in cases where absolute market-cap growth was flat or negative, companies that performed better than peers found their way up,” said Harshal Dasani, business head at INVasset PMS, a portfolio management services provider.
Major ascents
Among the most notable upgrades in Amfi’s reshuffle is Indian Hotels Co. Ltd, which has been bumped up from midcap to largecap status. The Tata Group-backed hospitality company’s average market cap as of 30 June stood at ₹1.1 trillion, translating to an 11.5% rise since December. Its re-rating reflects strong investor interest in the travel and hospitality rebound post the covid lockdowns.
Defence-related state-owned companies Solar Industries India Ltd and Mazagon Dock Shipbuilders Ltd also graduated to largecap status as their market caps surged past ₹1.1 trillion, rising 12% and 17%, respectively, in the first half of 2025.
Healthcare and pharma stocks were also well represented in the upgrade cohort, with Max Healthcare Institute Ltd, Mankind Pharma Ltd, and Apollo Hospitals Enterprise Ltd entering the largecap club.
Max Healthcare saw a 14% rise in market cap to nearly ₹1 trillion in the first half of this year. Other new largecaps Union Bank of India, Lupin Ltd, and Jindal Steel and Power Ltd, hovered just below the ₹1 trillion mark.
Smallcaps step up
The growth momentum wasn’t confined to the mid-to-largecap space. In a sign of broader market strength, nine smallcap stocks made their way into the midcap category.
Godfrey Phillips India Ltd, among India’s oldest tobacco and consumer goods companies, gained 15% in market value in the first half of the year, reaching ₹34,704 crore as of 30 June and earning a midcap tag. K.P.R. Mill Ltd, a textile-to-apparel company, gained 8% in that period, reaching a market cap of ₹34,180 crore.
Healthcare was prominent in Amfi’s latest upgrades, with Narayana Hrudayalaya Ltd, Laurus Labs Ltd, and Global Health Ltd (the operator of Medanta hospitals) rising steadily.
Other entrants into the midcap category included Cholamandalam Financial Holdings Ltd, Authum Investment and Infrastructure Ltd, Radico Khaitan Ltd, and Multi Commodity Exchange of India Ltd (MCX).
These companies currently have market caps ranging between ₹30,000 crore and ₹33,000 crore, with gains spanning 3% to 28% between 1 January and 30 June.
“The strength in healthcare, defence, and hospitality reflects both short-term catalysts and long-term shifts. The pandemic renewed focus on healthcare and travel infra, while defence is benefitting from policy support and geopolitical tailwinds. These themes could drive sustained investor interest,” Dasani of INVasset PMS.
Fading joy
In the first six months of 2025, 11 largecap stocks were downgraded to midcap, and 12 midcaps slipped into the smallcap category. These declines came primarily in sectors such as automobiles, energy, consumer goods, and IT.
Power and energy stocks were among the hardest hit, with NTPC Green Energy Ltd dropping 22% to ₹89,745 crore in the first half of the year, and JSW Energy Ltd tumbling 27% to ₹89,118 crore.
Consumer giant Dabur India Ltd, ICICI Prudential Life Insurance Co. Ltd, Bosch Ltd, and Polycab India Ltd also saw double-digit declines, with their market caps sliding below ₹90,000 crore.
Among Amfi’s mid-to-smallcap downgrades, IRB Infrastructure Developers Ltd and Tata Technologies Ltd led the fall, shedding 17% and 27.5%, respectively, in the first half of 2025. Other notable declines included Endurance Technologies Ltd, Apar Industries Ltd, and Indraprastha Gas Ltd.
