The weekly stock market did not show enthusiasm after the government announced the budget for the fiscal year 2083/84. During this period, the NEPSE index, along with the transaction amount and number of transactions, showed a decrease in investor enthusiasm in the stock market. Accordingly, the overall NEPSE fell by 26.5 points last week. 

NEPSE increased three days in the week and decreased two days. In three days, NEPSE increased by 51.55 points and decreased by 24.87 points in two days. In weekly trading, NEPSE decreased by 26.69 points. 

The government with a close two-thirds majority, great expectations of the citizens and economist Finance Minister Swarnim Wagle announced the budget for the upcoming fiscal year. Through the budget, the government has announced that the capital gains tax that has been imposed on the stock market is final. With this, the stock market failed to grow even though the long-standing dispute over whether the profit tax will be final or not has been resolved. Experts have pointed out two reasons for the market's failure to grow. First, the budget did not do anything to boost the declining morale of investors. Second, the capital gains tax rate was increased.

In recent months, some industrialists have been investigating issues related to securities trading, which has caused other investors to panic, and this has had an impact on the stock market, said Ambika Poudel, former president of the Nepal Investors Forum. “When the morale of general investors has declined, the increase in tax rates through the budget has further contributed to the decline in morale,” she said. “However, since the government has resolved the long-standing dispute over whether or not capital gains tax will be final through the budget, it will have a positive impact on the stock market in the long run.”

There is no program in the budget to encourage the private sector, and investors are not enthusiastic as they were afraid even before the budget. “The budget has clarified that capital gains tax is the final tax. But for investors, morale is more important than taxes,' he said, 'It doesn't matter if the tax rate is high when morale is high. The stock market has fallen because morale has not increased now.' The fluctuations in the market are normal and the market that has fallen today may rise tomorrow. But in the current situation, Sijapati said that the stock market is not likely to grow sustainably. 

Finance Minister Swarnim Wagle has claimed that the long-standing confusion about capital gains tax has been removed in the interest of investors. 'Let the group of stock investors come and increase the tax rate to 15/20 percent, we will pay it,' Finance Minister Wagle had said at a public event last week, 'But the government has taken this decision on the basis that it should be clarified that capital gains tax is the final one.' Finance Minister Wagle claims that this decision will have a positive impact on the stock market. Despite amending the capital gains tax system as per the demand of investors, the failure of the stock market to grow is seen as a concern.

Last week, a total of 51.18 million shares were bought and sold in the stock market, resulting in a turnover of 25.11 billion rupees. During this period, shareholders of 67 companies earned while shareholders of 201 companies suffered losses. 

Last week, the index of the trade subgroup decreased by the highest by 6.98 percent. The index of the finance company increased by the highest by 6.91 percent. The indices of the non-life insurance, other and life insurance subgroups increased during this period. However, the indices of the development banks, microfinance, banking, investment, hotel and tourism, production and processing and hydropower subgroups decreased, according to NEPSE data. 

The budget has made various announcements for the development and expansion of the Nepali insurance sector. Accordingly, the government has announced that the Nepal Reinsurance Company will lead and operate the group insurance fund for long-term insurance, and a certain share of reinsurance will be provided to foreign reinsurance companies to mitigate risks.

The budget has announced that the third-party insurance, which has not been increased for a long time, will be increased to 1 million rupees, an arrangement will be made to install accident devices in vehicles to reduce road accidents, and insurance against accidents, fatal diseases, transportation, etc. will be made mandatory. Investors expect these arrangements to improve the share prices of insurance companies. Investors have analyzed the increase in life and non-life insurance indices last week as an effect of the budget.