Nepse is positive, investors are becoming optimistic about the new budget

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positive effect on nepse

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Kathmandu: The rise in the share market continued on Wednesday. On this day, the Nepse index has increased by 14.37 points and reached 2231.57 points. Shares worth over Rs 1 billion have been traded. All group indicators are green.

The capital market has been given priority in the policies and programs of the government. On this basis, the forthcoming budget is also expected to be capital market friendly. The government has announced to link capital market with productive industries.

Similarly, the insurance sector is said to be linked to production and productivity. From this, the government has given priority to the capital market and investors have expected capital market reform programs in the budget accordingly. On this basis, it is estimated that investors are gradually becoming positive towards the capital market. However, the market has been on a downward trend for a long time.

The market doesn’t just continue to decline. It can be assumed that the general investor’s attitude that it increases again after decreasing is gradually developing.

Similarly, looking at the PE ratio, the method most commonly adopted by the general investors, the prices of the companies have become very cheap. Looking at the 52-week average price, the price seems to have come down a lot.

Based on this, the current market price can be considered very attractive for both value investors and traders. However, the market has not been able to recover due to lack of liquidity in the financial system and high interest rates.

The market has also been affected due to the policy of NRB to push the share market. Similarly, positive investor psychology is also essential in the capital market. It is important for the general investor to have faith that the market will go up.

The market is largely driven by psychology. On the same basis, the government and the regulator need to create an environment where positive psychology develops.

Investors should be able to learn about the market by improving policies and conducting share education programs. If this happens, the confidence of the general investors in the market may increase.

 

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