Continuous Rise in the Stock Market: Is a Bull Run Coming?

On Wednesday, the NEPSE index surged by 54.04 points, reaching 2364.63 points. On this day, shares worth over NPR 12.05 billion were traded, the highest in nearly three years. Previously, on Bhadra 15, 2078, transactions worth over NPR 13.16 billion were recorded. The NEPSE index is also at its highest since Baisakh 28, 2079.

Positive Market Indicators

According to surveys, indicators for all groups have increased. The stock market has gained momentum due to the high morale of investors. Experts suggest that the recent increase in transaction amounts and the rise in the NEPSE index indicate the market is entering the initial phase of a bull run. The NEPSE index has been steadily advancing towards higher levels, supported by transaction volumes. The values of companies are also reaching new highs one after another.

Is a Bull Run Visible?

Experts indicate that the market appears to be strengthening. However, the stock market does not continuously rise or fall. There will be small and large corrections in between. In a bull run, despite these corrections, the market tends to move upwards.

Conditions Necessary for Market Growth

For the market to grow, policy reforms, low interest rates, and a favorable liquidity situation are essential. Similarly, economic and political conditions play a role. Additionally, investor confidence and the belief that the market will rise are crucial. Recently, some positive news for the market has emerged. The formation of a new government, the appointment of Bishnu Poudel as the Finance Minister, and further reductions in interest rates are considered major factors for market improvement.

Future Projections

It is estimated that the upcoming monetary policy will be relatively lenient and friendly to the stock market, leading NEPSE on a positive path. If policy reforms are implemented, NEPSE, which has been in a bearish trend for about three years, might take a U-turn and start rising.

Leading Companies

On Wednesday, 306 companies saw more than 32 million shares traded. Singati Hydro Power led the transaction amount with NPR 23.55 million. Similarly, NRN Infrastructure and Sona Minerals & Oil were in second and third places, respectively.

What Are Your Thoughts?

How do you view this rise in the NEPSE index? What impact could it have on the stock market in the coming days? You can share your thoughts below.