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NEPSE Index Correction on Sunday: Drops to 2966.33 Points with Transactions of NPR 28.83 Billion

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NEPSE trading

NEPSE Index Correction on Sunday: Drops to 2966.33 Points with Transactions of NPR 28.83 Billion

Kathmandu, On Sunday, the Nepal Stock Exchange (NEPSE) index dropped by 34.47 points to 2966.33 points, reflecting significant trading activity and enthusiasm in the market. The total trading amount for the day exceeded NPR 28.83 billion.

Key Points:

  1. Correction in NEPSE Index:

    • Current Status: The NEPSE index fell by 34.47 points to 2966.33.

    • Previous Status: On Thursday, the index had reached the psychological milestone of 3000 points.

  2. Stock Market Transactions:

    • Total Trading Amount: NPR 28.83 billion.

    • Index Performance: Out of 13 sectors, 4 sectors saw an increase in their indices.

    • Positive Circuit Limits: Shares of 5 companies were traded under positive circuit limits.

  3. Market Trends and Correction:

    • Initial Situation: The market showed attractive growth during the first session of the day.

    • Final Session Correction: Selling pressure was observed during the final session.

  4. Profit Booking and Market Status:

    • Short-Term Traders: Selling pressure was noted as short-term traders booked profits at lower prices.

    • Long-Term Outlook: The long-term perspective remains positive despite short-term corrections.

  5. Reasons for Market Support:

    • Bank Interest Rates: Continual reduction in interest rates and increased liquidity.

    • Policy Ease: The government maintains a positive outlook towards the stock market.

  6. Investor and Market Dynamics:

    • New Investors: Increasing entry of new investors as the market rises.

    • Nepali Diaspora: Nepalese abroad showing interest in stock trading.

    • Institutional Investors: Presence of institutional investors placing large orders.

  7. Dividend Season:

    • Profit Growth: Listed companies have seen average profit growth.

    • Dividend Rights: Shareholders can become entitled to dividends in a short period.

  8. Major Companies in Trading:

    • Himalayan Reinsurance: Highest trading amount of NPR 82 crore.

    • Second and Third Positions: Api Power and Kumari Bank, respectively.

Conclusion: The recent correction in the NEPSE index signifies a realistic market adjustment. If policy reforms and stability are maintained, the market is expected to return to a positive trend. Investors should strategically invest by considering financial indicators and market conditions.

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