Correction in the Stock Market on Sunday

The stock market saw a correction on Sunday, with the NEPSE index dropping by 22.14 points to settle at 2109.34 points. The total share turnover was over NPR 4.44 billion. One company hit a positive circuit breaker. Out of 13 sectors, only 2 sectors' indices were positive, with the hotel and tourism sector showing significant improvement.

Key Data Points

- NEPSE Index: Dropped by 22.14 points to 2109.34.

- Total Turnover: Over NPR 4.44 billion.

- Positive Circuit: 1 company.

- Positive Sectors: 2 out of 13, with notable improvement in the hotel and tourism sector.

- Companies Traded: 315 companies.

- Shares Traded: Over 11 million shares.

- Top Turnover Company: IME Life Insurance with over NPR 156.6 million.

- Second and Third in Turnover: CEEDB Hydropower and First Microfinance.

Market Activity

The market was impacted by profit-booking as investors who benefited from the recent five-day rally took their profits. The index had increased by 113.5 points over the last five trading days. This correction is seen as a natural part of market dynamics, necessary for a healthy market.

Investor Sentiment

Investors believe that the market will gradually regain momentum despite some corrections. There are also rumors about taxes that might have affected the market, though these are confidential.

Upcoming Budget

The budget will be presented on Tuesday, and investors have placed their demands for market improvements. If these demands are addressed, it is expected to positively impact the market.

Regulatory Changes

The central bank has made some regulatory changes through its monetary policy review, allowing banks to sell 20% of their core capital shares after one year. This is expected to increase share purchases by banks, boosting demand in the market. This psychology has played a role in the market's growth this week.

Investment Advice

Experts advise investors to consider the opportunities and risks in the market carefully. They suggest planned investments in companies with strong financial indicators, such as good dividend capacity, profits, reserves, EPS, and net worth, to reduce risk.

In summary, despite some corrections, the market is expected to gradually pick up momentum, supported by regulatory changes and investor optimism.