According to a recent report by Nuvama, ITC Hotels’ demerger will have significant implications for its inclusion and exclusion in market indices such as NSE and BSE. Post-demerger, ITC Hotels will go through a special pre-open session (SPOS) before its tentative listing between January 3, 2025, and January 6, 2025. The SPOS will adjust ITC’s stock price while reflecting ITC Hotels’ valuation in the interim.
Passive and active fund managers are expected to adjust ITC Hotels’ price during this period. Nuvama estimates that ITC Hotels will initially be included in indices such as the Nifty 500 but will be excluded from broader indices until its trading stabilizes post-listing. Passive fund managers may begin rebalancing their portfolios during this transitional period.
The report highlights how this adjustment could bring short-term volatility in ITC Hotels’ stock price, with both opportunities and risks for investors.
Disclaimer: This article is based on Nuvama’s research report and does not constitute financial advice. Investors should conduct their own research before making investment decisions.
