April 12: The decision of the banks and financial institutions to slash the interest rates on deposits has had a positive impact on the NEPSE Index today. The NEPSE Index, which had remained sluggish lately, gained an impressive 92.22 points and closed at 1963.55 today. 

Earlier, Nepal Bankers’ Association had decided to lower the interest rates on deposits by 10%. In the light of this, the interest rates on deposits have decreased to a single digit. 

Experts say that decision to lower the interest rates had a positive effect on the NEPSE today.  Interest rates and stock market have a negative relationship. When the interest rates rise, stock market declines and when the interest rate decreases the stock market goes up.

The NEPSE Index went up by 4.95%, which is 92.22 points and closed at 1963.55. 

A total of 267 scrips traded hands via 47,285 transactions. A total of 6,107,425 shares exchanged hands amounting to Rs. 1.976 billion in turnover amount. This is more than double the last trading day's turnover of Rs. 94.52 crores.

Commercial banks, finance companies and micro finances witnessed a massive rise. Banking, development banks, finances and microfinances increased by 5.46%, 5.74%, 6.84% and 5.11% respectively. 

Shivam Cements Limited (SHIVAM) shares traded the most and had the highest turnover of Rs. 11.71 crores closing at a market price of Rs. 413 per share.

Seven scrips gained the highest 10% each and hit the positive circuit for the day.
Conversely, Everest Bank Limited (EBLD86) lost the highest 1.99% today.

All sector indices closed in the green zone.  "Finance" gained the highest 6.84%, while "Mutual Fund" gained the least 2.87% today.