NEPSE Index Sees a Modest Rise, Market Remains Uncertain

On Wednesday, the stock market experienced a slight increase, with the NEPSE index reaching 2,786.40 points, up by 3.80 points. However, the trading volume was affected, with transactions exceeding NPR 13.72 billion, and one company hitting a positive circuit level. Four sector indices were positive on this day.

Market Volatility:

The stock market witnessed sharp fluctuations on Wednesday, with the index frequently rising and falling throughout the day, ultimately closing with a slight gain. This has left investors uncertain about whether the market will continue to rise or decline.

Investor Strategy:

• Investors who sold shares during the previous attractive rally are still in a "wait and watch" mode.

• Large and institutional investors are waiting for the right time to re-enter the market after booking profits.

• There is a possibility that once the right time comes, those who sold will increase their buying activities again, which could lead to a more dominant buying side in the market, potentially pushing the index upward.

Role of Government and Regulatory Bodies:

The government and regulatory bodies appear committed to market improvement.

• The central bank has adopted a relaxed policy in recent days.

• Policies have been amended to allow banks to increase their investments.

• The loan limit for institutional investors has been removed. These measures are expected to lead to a positive market trajectory, even if there are corrections.

Investor Sentiment:

The psychology of general investors plays a crucial role in the market. If investors believe in a rising market, the NEPSE index tends to respond accordingly. However, if morale weakens, the market may not achieve the expected growth. Therefore, maintaining high investor morale is essential.

Overall Situation:

Fluctuations in the market are natural. A rising market can decline, and after a period of decline, it may rise again. Investors need to face market fluctuations by deciding on a short-term or long-term strategy. Experts suggest that increasing liquidity in banks and decreasing interest rates could drive the market upwards.

Wednesday's Trading Highlights:

On this day, more than 35 million shares of 326 companies were traded.

• Top position: Chandragiri Hills, with a trading amount exceeding NPR 430 million.

• Second position: Nepal Finance.

• Third position: Himalayan Reinsurance.

This market stability and modest growth indicate both opportunities and risks, and investors are advised to make careful decisions.