In its latest report, Nuvama has raised concerns over potential passive selling pressures for ITC Hotels following its demerger. The report estimates that passive fund managers may offload shares during the initial listing phase, leading to temporary price volatility.
Additionally, ITC Hotels is not expected to be included in derivatives immediately post-listing, as per SEBI’s six-month trading rule. Nuvama emphasizes that these regulatory constraints may impact the stock’s liquidity in the short term, but its inclusion in indices like the MSCI Global Small Cap will provide support.
The report encourages investors to closely monitor trading patterns during ITC Hotels’ initial listing phase.
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.
