Kathmandu: The interest rate panic has made the capital market more relaxed. On Sunday, NEPSE index decreased by 33.97 points to 1876.41 points. Shares worth more than 1.6 billion rupees have been traded. Investors' morale is weak. The market performed poorly as the fear of interest rate hike continued among the common investors. However, the market has reached a very low point. The price has become very cheap. Looking at the PE ratio, it seems that the price has become very cheap.
Therefore, analysts say that this can be a good opportunity for prudent investors. Looking at the capital market from other angles than the interest rate, aspects of improvement are gradually developing. The indicators of the economy are gradually becoming stronger. There are signs of improvement in deposits in banks. But at this time, it seems that the cost of banks will increase with the sudden increase in interest rate.
Experts say that this will be disadvantageous to the economy as a whole. Moreover, past data has also confirmed that the increase in interest rates will not increase deposits. Now the interest rate of banks has reached a very high point. After reaching the highest point, it will come down again. Therefore, common investors should also take care of the market cycle. The psychology of investors plays a vital role in the stock market.
It is necessary to develop a positive psychology in stock market investors. The market is reduced. The economy also runs in cycles. It should be taken into account that its impact is directly on the market. Experienced experts say that investors should have faith that the falling market will go up again. Our market has been in a vicious cycle for the past 1 year. The market has been suffering due to the increase in interest rates and lack of liquidity.
In the meantime, problems also appeared in the economy. Especially the external sector of the economy deteriorated due to high imports and the failure to improve exports accordingly. But now gradually improvement has started to be seen in the external sector. Remittances have started to increase. The tourism sector has started to improve. It will help in earning foreign currency. The price of oil in the international market is also decreasing.
On the other hand, the dividend season has started in the market as well. Share prices of companies with strong financial indicators and good dividend potential can also be bought very cheaply. Market experts say that investors should be able to make a decision by analyzing the overall aspect.