The stock market is experiencing widespread discussion due to the recent monetary policy changes and the change of government, setting new records.

Nowadays, there is a lot of talk about the stock market. The latest monetary policy has caused the stock market to boom following the change in government. Additionally, the stock market is breaking records.

The Nepal Stock Exchange (NEPSE) recorded the most transactions ever on Wednesday. In a single day, a deal of 21.91 billion and 1.5 million was completed. It's the highest turnover we've ever seen. Prior to this, on July 31, 2078, a 21.64 billion 76 million transaction was executed in NEPSE.  

The monetary policy was disclosed by Nepal Rastra Bank on Friday. Following that, NEPSE rose by 113.42 points on Sunday, closing at 2,681.56 points. A transaction totaling 15 billion 815 million rupees was made on that day.

During Monday's trading, the NEPSE had a double-digit correction. NEPSE fell by 20.46 points on that particular day. Nonetheless, there were four billion more transactions than Sunday. In NEPSE, a transaction totaling 19.6 billion 91 lakh rupees occurred on Monday.

Likewise, NEPSE saw a 35.55 point increase with a trade value of 17.26 billion 63 million on Tuesday. NEPSE fell 5.29 points on Thursday, the final trading day of the week. But the transaction amount was almost exactly the same as it was on Wednesday. On Thursday, a transaction of 21.71 billion 34 lakh rupees was completed.

Approximately one trillion NEPSE was traded throughout the course of the week's five trading days. Shares valued at 96 billion 318 million rupees have changed hands on NEPSE this week.

The "Paudel factor" and accommodative interest rates

The recent change in government has given the stock market a boost after it had been stagnant for a while. For the previous two and a half years, the index hovered around two thousand points. But as the administration changed, speculation that Bishnu Poudel might take over as finance minister gave the market a boost. The excitement was reinforced by the monetary policy that Nepal Rastra Bank declared on Friday. The NEPSE index rose in part as a result of the lax monetary policy.

Growth is not normal; exercise caution

The stock market has gained 187 points this week. The amount transacted was approximately one billion. The market capitalization as of this Thursday was 43 trillion 72 billion 36 million 96 million. This week's overall stock market indicates that any company, whether its financial statements are strong or not, has seen a gain in share price.

According to Niraj Giri, a former executive director of the Nepal Securities Board, the current growth trajectory of the market is not normal. "The way the stock market is growing right now is a little bit unnatural," he remarks. The run of shares should be known to investors. Particularly, novice investors ought to exercise caution.

He claimed that the surge in the stock market was partially due to the effects of the monetary policy and the changes in government. Giri continues, "Suddenly the stock market has run," adding that the stock market's current speed will not produce positive outcomes. All businesses' prices, whether profitable and not, have gone up. Given that positive circuits exist in businesses with unsatisfactory financial statements, it might be argued that the market's growth is artificial.

Before, during Vishnu Paudel's tenure as finance minister, the stock market achieved a record high. August 3, 2078, a Thursday, saw NEPSE hit 3,227.11 points. At the time, Poudel served as the minister of finance.

Finance Minister Paudel hadn't changed the policy in that way at the time. He didn't introduce the policy system by bolstering the stock market, not even as the finance minister this time. The'share players' increased the market by revealing his name. The players now have some leverage to increase their share prices thanks to the loose monetary policy.

 He says that there are two sides to Nepal's economy. The market, however, is moving in the opposite direction. The economic recession has impacted several areas. The economy of 20/25 days ago and the current economy are identical. The state of the economy has not suddenly improved. The market and the economy are not intertwined.

Approximately 22 billion rupees worth of transactions are made in a single day in a country that is experiencing an economic slump. He suggested that we look into the source of this money. Giri stated to Economic News that "the nation is experiencing a recession." The economy has not improved in this way. In a single day, almost 22 billion rupees are exchanged. It's also important to look into how so much money was made during the recession.

 According to investors, no black money has been received.

According to share investor Chhotelal Rauniar, there isn't any black money involved in any of the recent stock market transactions. He states, "There are claims that black money enters the market right before a significant transaction." When the market expands, investment follows. Investing is often postponed until prices are high. You cannot refer to it as black money. Black money hasn't arrived, not even in the current market.

Rauniar asserts that the money passing via the legal system cannot be referred to as "black money" because it is going through a bank. NRNs are making investments for housewives. Additionally, the funds received through remittances are invested in shares.

He insisted that the appropriate authorities look into and address the increase in the share prices of both profitable and unsuccessful businesses. "If bad companies have increased, they should be punished," asserts Rauniar. This has to be looked into. The appropriate agencies ought to investigate the cause and identity of the rise in dishonest businesses.

The stock market's expansion has investors thrilled. Stock investor Keshav Koirala reports that investors' interest has increased and that NEPSE is keeping historical records. "Share market friendly policies have come," he declares. The stock market is creating new history as a result. This historical significance excites investors.

He continues, saying, "The area of investment has been narrowed due to the economic recession," after stating that large investors have entered the sector. Bhatabhat shares are increasingly being purchased by those who are hesitant to make investments in other industries.