General improvement in the stock market, how about other indicators?

The NEPSE index saw a slight improvement on Monday, rising by 3.93 points to reach 2113.27 points. Shares worth over 3.89 billion rupees were traded. Two companies hit the positive circuit, and 10 out of 13 sector indices were positive. On Sunday, the market had corrected.

Investors in the stock market are in a "wait and see" mode ahead of the budget announcement by the government on Tuesday. As the final preparations for the budget are underway, the stock market showed normal activity on Monday.

Investors are expecting policy adjustments and legal provisions in the budget to improve the continuously declining stock market over the past three years. They have demanded a reduction in the capital gains tax rate. Currently, there is a 7.5% capital gains tax on short-term transactions and a 5% tax on long-term (over one year) transactions. Investors have asked for these rates to be reduced.

Some provisions made by the central bank through monetary policy reviews have already started to show positive effects. Banks are now allowed to sell 20% of their core capital shares after one year, which is expected to increase the demand for shares in the market.

General investors are advised to make planned investments by selecting companies with strong financial indicators. Investing in companies with good dividend capacity, profits, reserves, EPS, and net worth can help mitigate risks.