Is the Share market of Nepal towards to Bearish Trend ?

Sep Tue 2021 05:03:08


Is the Share market of Nepal towards to Bearish Trend  ?

Kathmandu. After the central bank did not amend the limit on share pledge loan, the share market has moved towards a bearish one. The central bank's monetary policy has allowed only Rs 40 million per bank and financial institution and Rs 120 million from the overall financial system to take share pledge loan, which has had a big impact on the share market.

The central bank had made arrangements to take Rs 40 million and Rs 120 million per person through monetary policy. However, the market has been on a downward spiral since the individual was later reduced to a family through directives.

Due to the central bank's policy, large investors sold their shares and remitted money to the bank. The bank has also frozen the remaining loan up to Rs 40 million out of the one-year loan, which has had a direct impact on the share market.

Large investors used to buy shares by taking loans from banks. Some investors used to buy shares worth up to Rs 500 million in one day. However, the market has continued to decline after the bank set a limit of Rs 40 million.

The big investors have not opposed the policy brought by the central bank as all the investors have opposed it. Big investors don't want to comment on the market.

They have sold their shares even after consuming some gluten. They have not entered the market yet. Currently, only small investors are active in the market.

Large investors have not bought any shares from brokers in the stock market. Nothing has happened to that small investor. The market can shine again only if the central bank removes the limit of share pledge loan. Otherwise, the market is unlikely to return.