The decline in the share market continued on Wednesday. Nepse has closed below 25 hundred points. The purchase and sale amount has also become very low. On this day, the Nepse index decreased by 53.10 points and stood at 2455.80 points. Shares worth Rs 2 Arab 66 Crore have been traded. Even after the stock market investors have lost Arabs of rupees in a short period of time, the regulatory bodies have remained still silent.
The role of the Ministry of Finance and the central bank (NRB) is also seen as an anti-share market. Policy interventions have been made to curb the growing market. That is why the market is sluggish. At the same time, the market has been further affected by the lack of liquidity in banks, tight CD ratio, and raising interest rates on the same pretext. Similarly, the trading trend has been dominating the market recently. As there is a tendency to buy and sell immediately rather than long-term investment, profit is booked quickly.
Due to this, the Nepse indicator is also fluctuating rapidly. Even when the market is short-term bearish, those who sell shares at very low profits have become active. Lack of confidence that the market will grow has led to a tendency to sell with a small profit. Due to this, it is estimated that the market has not been able to make an upward journey.
The market that reached above 3200 has now come to the line of 2400. In the space of about 4 months, there have been 2 big corrections and many other medium and small level corrections. In the meantime, most investors are at a loss. New investors are even more scared. Some positive packages are needed to improve their self-esteem.
Investors can also move towards a more sustainable investment model, which could help improve the market. It is expected that liquidity in the financial system will gradually ease. Government spending will now increase. This will also help ease liquidity. Money will also start flowing to local bodies. At this time, as the market is undergoing a correction, there is an opportunity to buy shares at a discount.
The average investor should invest in a company with strong financial indicators and strong dividend potential. When this happens, it may be easier to minimize market risk. The company’s dividend potential, business expansion potential, future plans should also be considered. Analysts say that one should not forget to pay attention to risk-bearing capacity while investing.
It is important to be sure about which term to buy in the short term, medium-term or long term. Don’t forget to pay attention to the basic aspects of the invested company. As it is the season of dividends, analysts have suggested that they should state their strategies paying attention to that as well.
More than 65 Lakh 60 thousand shares of 226 companies have been bought and sold today. Indicators of all groups are red. Hydropower, development banks, trade, finance, and other groups have declined further. National Hydropower is in the first in terms of turnover with more than Rs. 11 Crore 88 Lakh. Similarly, Nepal Telecom is ranked second and Himalayan Distillery is ranked third.