Is the share market currently in a ‘bullish’ or ‘bearish’ trend?

The share market index (Nepse), which had been on the decline since reaching a peak of 1881 points on July 12, 2073, has surged dramatically in the recent month. In the last three months, the Nepse index has increased roughly 500 points. After climbing nearly 200 points last week, the Nepse index has hit 1632 points. 

Niraj Giri, Executive Director and Spokesperson, Nepal Securities Board, Ambika Prasad Poudel, Former President of Nepal Investors Forum, and Manoj Gyawali, Deputy General Manager, Nabil Bank and Share Analyst have been invited by the AP1 channel crew.

According to them, The stock market, which had been slow for a long time, has now returned to a bullish trend, according to analysts. “The market that has struck the last point of collapse is now moving towards recovery,” says experienced investor Poudel.

Over the past decade, the stock market has experienced two major bearish trends. After falling from the high journey of 1881, Nepse had reached 1100 points on 19 February 2075 between two and a half years. Even a decade before this, Nepse had reached a high point of 1175 points on 15 September 2065 BS and had dropped to 292 points on 1 July 2068 BS. investors are cheering as the stock market picks up. Ambika Prasad Poudel, former chairman of the Nepal Investors Forum, an organization of equity investors, says,

According to investors, there are significant reasons for the improvement in the stock market. First, the market has completed a two-and-a-half-year declining cycle. Second, with the rise of investor morale, new big investors have entered the market. According to a stock broker, even investors with small capital have started investing enthusiastically after the market started booming. Market turnover also indicates an increase in investor sentiment. For example, last week’s stock trading volume set a historic record. 

The amount had already crossed the Rs. 4 billion mark. Even in the days before that, the transaction amount was high. In the opinion of investors, this is proof that the market has gained a strong foothold. According to investor Poudel, the stock market starts to shine when the expansion of other sectors is weak. He is of the opinion that the flow of money in the stock market has increased due to the lack of expected expansion in the real estate sector and the slowdown in the construction sector and the economy.

According to some investors, the corona virus has halted commerce with China, causing money to rush into the stock market. Another reason for the market’s expansion, according to investor Poudel, is the bank’s recent granting of easy loans to investors. According to the Manoj, the new technique of calculating the spread rate (the gap between the average interest rate paid by a bank and the rate paid by the borrower) will diminish bank earnings.

The same mechanism, according to Niraj Giri. According to him, the NRB has barred investors from engaging in any legitimate activity by pledging their assets. “, he explained “The National Bank’s provision is incorrect. It has to be fixed. Our property rights have been taken away from us.”

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