Top 250 companies who are very low

Mutual funds need to invest in companies that are top 250 by market cap. These are the companies. The companies that are new to this list, if recognized before the 6 month mark that AMFI publishes its results, may give a good idea of companies about to receive huge influx of cash in a timeline of 3-6 mos. Strengths: Any company that is in the reach of mutual funds and is cheap should (note the uncertainty) be gobbled up by largecap and midcap funds. The reason for using 6k cr is that it gives approximately 250 companies. Top 250 companies is what are classified as midcap. Weaknesses: this screen contains companies that have depressed share price. Continued depression will take the company out of the AMFI list instead of into it. Companies like YES bank will come in this list due to the inherent nature of looking at low CMPs. A company making low lows will be there. A fundamental analysis is required to understand why the share price has been reduced. News might be useful. Necessary Tweaks: Backtesting is required. A way to identify companies like Yes bank (one that is making new lows everyday) is required to be built into this screen. The most important tweak is to use this screen when AMFi is about to publish its 6 month list. Variations: 1. Companies that have recently achieved a market cap of 6k cr is a good variation. It would lead to finding companies that have been growing instead of falling. The reason this variation is different from the current screen is because the companies that are increasing in market cap will not have reducing share prices, which is the motto of this current screen.

by Vedant