No, it is not mandatory to stay at the hostel in your 1st year. You can leave the hostel at any point if you feel the requirement. However, it is best if you stay there because it can help you in the upcoming exams. It can assist in saving up your travel time.

You can also acquire a lot of assistance from the people staying at the hostel, besides you. The major pitfall is usually felt by students who live outside the hostel premises as it can be difficult to run back and forth between your residence and the campus.

The procedure to get into the NICMAR Pune is not at all difficult because you need to pass an entrance and a personal interview. 

The entrance is nothing else than the NCAT, which you have to pass with flying colors, and then there will be a personal interview scheduled after the exam. 

If you manage to pass the personal interview, you will get admission in NICMAR, or else, work harder for your next attempt. NCAT is not that tough. It's easy if one prepares well.