NEPSE Index Halts Trading for Second Time on Sunday

The NEPSE index halted trading for the second time on Sunday due to a circuit breaker, suspending transactions for 40 minutes. The first circuit breaker was triggered within the first 1 minute and 33 seconds of the market opening as the NEPSE index surged by 4%. After resuming, the market saw a further 5% increase, prompting a second circuit breaker and halting trading once again.

Positive Impact of Monetary Policy

The positive impact of the monetary policy has been evident in the NEPSE index's significant rise. Following the announcement of the monetary policy, investor confidence increased, leading to a notable rise in share purchases and consequently a substantial increase in the NEPSE index.

A circuit breaker is a mechanism that temporarily halts trading in the market during extreme volatility, which helps alert investors and aids in stabilizing the market.

Conclusion

The second circuit breaker on the NEPSE index on Sunday is a result of the positive impact of the monetary policy. This event clearly demonstrates the effectiveness of the monetary policy and the confidence of investors. However, both policymakers and investors need to remain vigilant in managing such rapid growth. Circuit breakers play a crucial role in stabilizing the market and maintaining long-term health.