The market fell due to lack of investors' confidence when the share loans were obtained cheaply and the real estate and other sectors could not become viable.
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The NEPSE index, which measures stock trading, fell by around 14.88 points on Wednesday. It is 0.55 percent less than the previous day. Along with this, the overall NEPSE has reached 2 thousand 682.15 points. In the last four trading days, NEPSE has been falling continuously. Last week, NEPSE fell on all trading days except Thursday.
Last Thursday, the NEPSE closed with an increase of about 17 and a half points, but that increase did not last until Sunday. According to this, NEPSE decreased by 21.63 on Sunday, 10.14 on Monday, 7.66 on Tuesday and 14.88 on Wednesday. In these four days, NEPSE has decreased by a total of 54.31 points.
Experts say that there is no reason why the stock market should continue to fall. Through the semi-annual review of the monetary policy issued by the National Bank, the policy has been introduced to increase the profit of the banks and expand the credit in the productive sector.
It seems that the profit of the bank is likely to increase with this policy. Currently, about 6 trillion rupees of investable funds have been accumulated in banks and financial institutions. Interest rates have dropped to single digits. Other areas of investment including real estate, industry, small and medium entrepreneurs have not become viable as expected. Therefore, banks and financial institutions are also asking investors for share loans.
Rashtra Bank's monthly data has also shown that share loans have increased this year compared to last year. But it has not seen a positive effect on the stock market. Instead, NEPSE is continuously decreasing. Brokers say that no further investment decisions have been made as investors are waiting for positive news about the stock market.
"Now, to increase the confidence of investors, the government, Rashtra Bank, Securities Board, Insurance Authority and other agencies should bring policies to increase the stock market," said a broker, "otherwise the speed of the stock market will not increase relatively. On the contrary, there is a high possibility of a decrease.'
Out of the 54 companies that entered the business, the share price of 54 companies increased on Wednesday, 182 companies decreased, while the remaining 7 companies remained stable. 93 lakh 83 thousand 802 shares were bought and sold in 54 thousand 622 transactions. Shares worth about 5 billion 143 million rupees have been traded in those purchases. However, compared to Tuesday, the number of transactions, the number of transaction shares (share) and the transaction amount all increased on Wednesday.
Out of the 13 sub-groups that came into business on this day, the index of all 'others' decreased except for hotels and tourism and business. Among them, the index of life insurance sub-group decreased by 200 and the index of non-life insurance decreased by 64.56 points. The index of finance companies subgroup decreased by 40.33, production and processing by 24.46, hydropower and microfinance subgroup by 24.16 points.
With the decline of NEPSE, the size of the stock market (total market capitalization) has decreased to 44 trillion 53 billion. Total market capitalization on Tuesday was 44 trillion 78 billion rupees.
