Kathmandu. The Nepal Stock Exchange (NEPSE) has declined by a higher number on Monday, the first day of trading of the year. The stock market, which had been open for three consecutive days, had been declining since the beginning.

 The NEPSE index fell by 114.02 points to close at 2698.25 points. Similarly, the transaction amount has also declined today. Today, the turnover was Rs 8.49 billion. According to Nepse, the share price of a traded company has risen sharply. Among the companies whose share price is rising is Manakamana Smart Microfinance Institution. The company's share price has risen 9.99 percent to Rs 989.80 per share today.

Similarly, investors in 181 companies have lost. Only investors in four companies have earned. Arun Valley Hydropar Development Company has the highest turnover today. The company has a turnover of over Rs 400 million today. The general public expected the stock market to improve again after the budget was passed. However, instead of stopping the decline that started last week, the trend seems to be accelerating.

This is because investors who were buyers in the market, which had been steadily rising until a few weeks ago, tried to exit the market out of concern that they would suffer more losses. However, there is a lack of liquidity in the market now. And, people are preparing to spend for major festivals. Apart from this, the increase in interest rates by all commercial banks with effect from September 20 has also had a direct impact on the stock market.

With the passage of the budget, the way is open for the government to spend, but due to the upcoming festivals, it is unlikely that cash will flow out of the government coffers immediately. Even other basic aspects, including the government's failure to take full advantage, have not boosted investment in the stock market. Thus, it is estimated that the market will continue to decline for some time to come as there is no basis to support the capital market.