Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

SBI Cards & Payment Services / Event-Driven

Once up a time in India, there was a smorgasbord of mutual fund schemes launched by different fund houses. The same fund house had myriad schemes that were almost identical to each other. Different fund houses has similar sounding schemes that invested in stocks that were nothing like each other. Fund houses had discretion in determining parameters that assigned stocks to large cap, mid cap and small cap categories.Finally in 2017, the Securities and Exchange Board of India (SEBI) stepped in and created a framework to bring in uniformity and standardize scheme categories and the characteristics of each category. The implementation was left up to the Association of Mutual Funds in India (AMFI).AMFI publishes a list of stocks every January and July using data from the previous six months to categorize stocks into large cap, mid cap and small cap segments of the market. Mutual funds have one month to rebalance their portfolios to adhere to the new categorization.For the six months ending 30 June 2020, we see quite a few changes due to the volatility in the markets and active fund managers will need to buy/sell these stocks to align with the new categorization. These category changes throw up trading opportunities due to the large AUM tracking these schemes.  The changes should be announced in a few days.<table class="table table-striped">
<colgroup>
<col>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td colspan="2" style="width: 301pt;">MID CAP TO LARGE CAP</td>
<td colspan="2" style="width: 333pt;">LARGE CAP TO MID CAP</td>
</tr>
<tr>
<td>Code</td>
<td>Name</td>
<td>Code</td>
<td>Name</td>
</tr>
<tr>
<td>SBIC.NS</td>
<td>SBI Cards and Payment Services Ltd</td>
<td>PIRA.NS</td>
<td>Piramal Enterprises Ltd</td>
</tr>
<tr>
<td>ADNA.NS</td>
<td>Adani Green Energy Ltd</td>
<td>PWFC.NS</td>
<td>Power Finance Corporation Ltd</td>
</tr>
<tr>
<td>ABOT.NS</td>
<td>Abbott India Ltd</td>
<td>YESB.NS</td>
<td>Yes Bank Ltd</td>
</tr>
<tr>
<td>IGAS.NS</td>
<td>Indraprastha Gas Ltd</td>
<td>ACC.NS</td>
<td>ACC Ltd</td>
</tr>
<tr>
<td>CADI.NS</td>
<td>Cadila Healthcare Ltd</td>
<td>KANE.NS</td>
<td>Kansai Nerolac Paints Ltd</td>
</tr>
<tr>
<td>ALKE.NS</td>
<td>Alkem Laboratories Ltd</td>
<td>RECM.NS</td>
<td>REC Ltd</td>
</tr>
<tr>
<td>TACN.NS</td>
<td>Tata Consumer Products Ltd</td>
<td>ABB.NS</td>
<td>ABB India Ltd</td>
</tr>
<tr>
<td>MRF.NS</td>
<td>MRF Ltd</td>
<td>ORCL.NS</td>
<td>Oracle Financial Services Software Ltd</td>
</tr>
<tr>
<td>WHIR.NS</td>
<td>Whirlpool of India Ltd</td>
<td>ZEE.NS</td>
<td>Zee Entertainment Enterprises Ltd</td>
</tr>
<tr>
<td colspan="2">SMALL CAP TO MID CAP</td>
<td colspan="2">MID CAP TO SMALL CAP</td>
</tr>
<tr>
<td>Code</td>
<td>Name</td>
<td>Code</td>
<td>Name</td>
</tr>
<tr>
<td>SUMH.NS</td>
<td>Sumitomo Chemical India Ltd</td>
<td>INDB.NS</td>
<td>Indiabulls Ventures Ltd</td>
</tr>
<tr>
<td>RCSY.NS</td>
<td>Ruchi Soya Industries Ltd</td>
<td>SHCU.NS</td>
<td>Shriram City Union Finance Ltd</td>
</tr>
<tr>
<td>ESCO.NS</td>
<td>Escorts Ltd</td>
<td>UJJI.NS</td>
<td>Ujjivan Small Finance Bank Ltd</td>
</tr>
<tr>
<td>CBI.NS</td>
<td>Central Bank of India Ltd</td>
<td>MRPL.NS</td>
<td>Mangalore Refinery and Petrochemicals Ltd</td>
</tr>
<tr>
<td>TBEI.NS</td>
<td>Tube Investments of India Ltd</td>
<td>EDEL.NS</td>
<td>Edelweiss Financial Services Ltd</td>
</tr>
<tr>
<td>JULS.NS</td>
<td>Jubilant Life Sciences Ltd</td>
<td>EIHO.NS</td>
<td>EIH Ltd</td>
</tr>
<tr>
<td>ITEL.NS</td>
<td>ITI Ltd</td>
<td>FLFL.NS</td>
<td>Future Lifestyle Fashions Ltd</td>
</tr>
<tr>
<td>METP.NS</td>
<td>Metropolis Healthcare Ltd</td>
<td>PNBH.NS</td>
<td>PNB Housing Finance Ltd</td>
</tr>
<tr>
<td>TTKL.NS</td>
<td>TTK Prestige Ltd</td>
<td colspan="2" rowspan="3"></td>
</tr>
<tr>
<td>JMSH.NS</td>
<td>JM Financial Ltd</td>
</tr>
<tr>
<td>SHEF.NS</td>
<td>Sheela Foam Ltd</td>
</tr>
</tbody>
</table>

Once up a time in India, there was a smorgasbord of mutual fund schemes launched by different fund houses. The same fund house had myriad schemes that were almost identical to each other. Different fund houses has similar sounding schemes that invested in stocks that were nothing like each other. Fund houses had discretion in determining parameters that assigned stocks to large cap, mid cap and small cap categories.Finally in 2017, the Securities and Exchange Board of India (SEBI) stepped in and created a framework to bring in uniformity and standardize scheme categories and the characteristics of each category. The implementation was left up to the Association of Mutual Funds in India (AMFI).AMFI publishes a list of stocks every January and July using data from the previous six months to categorize stocks into large cap, mid cap and small cap segments of the market. Mutual funds have one month to rebalance their portfolios to adhere to the new categorization.For the six months ending 30 June 2020, we see quite a few changes due to the volatility in the markets and active fund managers will need to buy/sell these stocks to align with the new categorization. These category changes throw up trading opportunities due to the large AUM tracking these schemes.  The changes should be announced in a few days.








MID CAP TO LARGE CAP
LARGE CAP TO MID CAP


Code
Name
Code
Name


SBIC.NS
SBI Cards and Payment Services Ltd
PIRA.NS
Piramal Enterprises Ltd


ADNA.NS
Adani Green Energy Ltd
PWFC.NS
Power Finance Corporation Ltd


ABOT.NS
Abbott India Ltd
YESB.NS
Yes Bank Ltd


IGAS.NS
Indraprastha Gas Ltd
ACC.NS
ACC Ltd


CADI.NS
Cadila Healthcare Ltd
KANE.NS
Kansai Nerolac Paints Ltd


ALKE.NS
Alkem Laboratories Ltd
RECM.NS
REC Ltd


TACN.NS
Tata Consumer Products Ltd
ABB.NS
ABB India Ltd


MRF.NS
MRF Ltd
ORCL.NS
Oracle Financial Services Software Ltd


WHIR.NS
Whirlpool of India Ltd
ZEE.NS
Zee Entertainment Enterprises Ltd


SMALL CAP TO MID CAP
MID CAP TO SMALL CAP


Code
Name
Code
Name


SUMH.NS
Sumitomo Chemical India Ltd
INDB.NS
Indiabulls Ventures Ltd


RCSY.NS
Ruchi Soya Industries Ltd
SHCU.NS
Shriram City Union Finance Ltd


ESCO.NS
Escorts Ltd
UJJI.NS
Ujjivan Small Finance Bank Ltd


CBI.NS
Central Bank of India Ltd
MRPL.NS
Mangalore Refinery and Petrochemicals Ltd


TBEI.NS
Tube Investments of India Ltd
EDEL.NS
Edelweiss Financial Services Ltd


JULS.NS
Jubilant Life Sciences Ltd
EIHO.NS
EIH Ltd


ITEL.NS
ITI Ltd
FLFL.NS
Future Lifestyle Fashions Ltd


METP.NS
Metropolis Healthcare Ltd
PNBH.NS
PNB Housing Finance Ltd


TTKL.NS
TTK Prestige Ltd



JMSH.NS
JM Financial Ltd


SHEF.NS
Sheela Foam Ltd




India Stock Classification Changes - Active Portfolio Churn

Value investor- India mid & small caps

Bhaskar Chakraborty

Thematic (Sector/Industry)

<ul>
<li>While many NBFCs pulled back on disbursements in 3QFY19, the sharpest declines were in SME/MSME, LAP and Loan Against Shares (LAS) segments</li>
<li>The pullback in SME/MSME financing has reduced working capital financing in some supply chains. This has impacted stocking in some discretionary items.</li>
<li>A number of players alluded to weakness in discretionary consumption post Diwali owing to the NBFC liquidity squeeze</li>
<li>With supply chains selectively impacted by liquidity tightness and weakness in demand, consumer discretionary players could not pass on input cost increases during the quarter</li>
</ul>


While many NBFCs pulled back on disbursements in 3QFY19, the sharpest declines were in SME/MSME, LAP and Loan Against Shares (LAS) segments
The pullback in SME/MSME financing has reduced working capital financing in some supply chains. This has impacted stocking in some discretionary items.
A number of players alluded to weakness in discretionary consumption post Diwali owing to the NBFC liquidity squeeze
With supply chains selectively impacted by liquidity tightness and weakness in demand, consumer discretionary players could not pass on input cost increases during the quarter


India Consumer Discretionary: Growth Slowing on NBFC Liquidity Tightness, Demand Softness

India

Indiabulls Ventures Limited is engaged in consumer finance business. The Company, through its subsidiaries, provides consumer loans and loans to businesses through its mobile application software. Indiabulls Ventures also provides securities and derivative brokerage services. Indiabulls Ventures serves clients in India.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Indiabulls Ventures (IBVE IN)

India Stock Classification Changes - Active Portfolio Churn

Once up a time in India, there was a smorgasbord of mutual fund schemes launched by different fund houses. The same fund house had myriad schemes...

Brian Freitas

India Consumer Discretionary: Growth Slowing on NBFC Liquidity Tightness, Demand Softness

While many NBFCs pulled back on disbursements in 3QFY19, the sharpest declines were in SME/MSME, LAP and Loan Against Shares (LAS) segments The...

Bhaskar Chakraborty

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)