Now the index is above 2,000, the supply has increased but the stock has not been able to grow

May Tue 2022 01:51:20

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Now the index is above 2,000,  the supply has increased but the stock has not been able to grow

Kathmandu. The Nepali stock market has been steadily declining. There are various comments being made in the market about the reasons for the decline of the market. There is a lack of money in the Nepali market now. It is not fair to say that the stock market rises when the country's economy is in crisis. The stock market is also a parameter that reflects the country's economy.

At present, the indicators of Nepal's economy are all in a negative direction. Exports have not increased as Nepalis are dependent on the import-oriented system. We do not have our own product. In the past, Nepal used to export paddy and rice. However, rice worth billions of rupees is being imported now.

Looking at the current situation, we do not know what we are emphasizing. Nepalis' money is being spent on all imports. Money has not been able to enter the stock market as all the money has been spent on rectangular items. As long as there is no money in the stock market, the market cannot be expected to grow.

Similarly, banks are also in crisis now. The liquidity crisis in the banks is growing. There is no money to invest. This has affected the stock market. As a result, the stock market has been steadily declining in recent times.

Investors have lost billions due to the long-running stock market slump. Investors are now confused about the direction of the market. Due to the continuous decline in the market, some investors are not able to buy and sell shares. It is natural for investors to be frustrated by the continuing decline. However, the market is not panicking. Have to wait Falling is not always the same.

In the past and present, when it comes to the stock market, the share capital used to be small. Investors were also few. But now there are many investors. The quantity of shares also increased. At that time there was a bank of 30 million. But now it has reached Rs 8 billion, Rs 12 billion. Looking at it this way, there is a lot of supply now. Along with supply, demand has also increased. In my time, the index was around four hundred to five hundred. But, now the index is above 2,000. It is not that the share has not increased. However, it is only because the supply has increased that the stock has not been able to grow.