Street signs: Mkts see Santa's smile, hotel stocks to gain further, & more

T+1 deadline for F&O stocks will see no further extensions

The new year will mark a transition of all futures and options (F&O) stocks to a T+1 (trading plus one day) settlement to bring in operational efficiency. Earlier it was planned in two tranches - the first to begin in December 2022. Foreign portfolio investors (FPIs) have been at odds with the regulator over the shift to a shorter trade settlement cycle. However, industry sources say there will be no further extension as the year has been provided already. “Custodians are working on the system. Eventually, they will have to truncate the time, be faster in providing certificates, and report quicker,” said a member of the FPI advisory committee.

Market rally brings end-of-year cheer

After closing three weeks with losses, the benchmark indices ended the last week of 2022 with gains. Last week the Nifty and Sensex rose 1.6 per cent. Stocks typically rise during the last five and first two sessions of the year. Angsty investors weighed up on a market rally at a time when fears were whirling around rate hikes remaining for a while. But easing US inflation brought some cheer. “We have mixed indications on the index front as the Nifty is facing resistance on every rise. However, buoyancy in the banking pack, along with select index majors from other sectors, has taken the pressure off. The Nifty has multiple hurdles to cross until 18,500. Participants must, therefore, continue with a stock-specific approach,” says Ajit Mishra, vice-president-technical research, Religare Broking.

Investors check-in to hotel stocks

Investors are bullish on listed hotel stocks, notwithstanding rising Covid cases globally threatening to spoil the party from January. Analysts say hotels continue to follow a strategy of keeping rates higher and sacrificing a bit of occupancy in preparation for a strong wave of demand for the rest of the financial year. Regarding Covid concerns, analysts say the industry has already borne the brunt of three Covid waves over 2020-21 through 2021-22, with demand bouncing back stronger and quicker each time. “We expect the hospitality industry to ride the wave yet again and emerge stronger from any potential Covid-led demand disruption,” said a note from ICICI Securities. Indian Hotels Company and Lemon Tree Hotels are likely to gain.