January 10: The stock market, which was in a continuous decline, rose above 2200 points with the formation of a new government. Many have assessed that the market, which has increased with the policy changes from the government, has now returned to a bullish trend despite closing below 2200 points on Tuesday.

In recent days, the market has been increasing by an average of 50/60 points daily although it fell by 21 points on Tuesday. The daily turnover has also reached Rs 4/5 billion. In the last 12 days, the stock market index NEPSE has increased by 345 points. It is an increase by 18.45 per cent.

The morale of investors was boosted after Bishnu Paudel got the responsibility of the Finance Ministry in the new government led by CPN (Maoist Center) Chairman Pushpa Kamal Dahal. The policy changes made by the Nepal Rastra Bank are also supporting the market.

Nayan Bastola, secretary general of the Share Investors Pressure Group, said that there is a possibility that the market will break the record of 3200. He said that if you look at the current market trend, there are signs that it has returned to a bullish trend.

Sabir Bade Shrestha, Chief Executive Officer (CEO) of CBIL Capital, shared that the current stock market is progressing according to policy developments. Shrestha said that the formation of the new government has created a positive atmosphere due to the policies of the NRB and the Ministry of Finance.

Shrestha believes that the prime minister taking the vote of confidence in the Parliament on Tuesday will further increase the morale in the market. In addition, he claimed that the market will boost further after banks and financial institutions reduce interest rates.

Shrestha said that there is less possibility of daily trading of 20/22 billion shares as in the past because the NRB has made it difficult for banks to invest in the stock market.

The share market climbed to 2211 points on Monday with an increase of about 400 points (396 points) before falling marginally to 2190 points on Monday. It is an increase of about 22 per cent.

When the market increases by 20 per cent, it is taken as a bullish trend, and when it decreases by 20 per cent, it is considered as a bearish trend.

Some analysts interpret it as a bullish trend if the stock market goes up for many days and falls only for a few days. That is, even if there is a bullish trend in the market for 3/4 days and a bearish trend for 1/2 days, the overall market is rising during this time. The market decreased only 3 out of 11 days.

Similarly, the continuous increase in share prices of companies whose financial conditions are weak is interpreted as the market moving into a bullish trend. Recently, the increase in group indicators, including finance and hydropower, also confirms it.