Stock market plunges 39 pts fearing blockade by IndiaNews of possible blockade by India to Nepal affected the stock market on Tuesday, the first trading day after the new constitution was promulgated by constituent assembly as the capital market index nosedived by 39.94 points to 1156.08 points.
News of possible blockade by India to Nepal affected the stock market on Tuesday, the first trading day after the new constitution was promulgated by Constituent Assembly as the capital market index nosedived by 39.94 points to 1156.08 points.
After the historic promulgation of the new constitution, it was expected that the market would soar but news circulating about blockage by India hampered the investors’ sentiments, investors and analyst said.
“News about blockage is the only region why the market slumped,” said a stock analyst with a regulatory body. According to investors, investors fears the worst after Indian customs office halted movement of Nepal bound tankers carrying petroleum products from Monday night. India later released them after seeking more documents on Tuesday.
Raj Kumar Timilsina, chairman of Nepal Investors’ Forum said the confusion among investors about whether India imposed blockade on Nepal invited selling spree among the investors on Tuesday. “There enough buyers of shares but they also didn’t want to pay more for the shares. So that the market went down on Tuesday,” said Timilsena. He, however, said that it was the short-term phenomenon only which could be corrected on Wednesday.
Market indices of all but one grouping, witnessed downturn on Monday. According to Nepse, groupings including that of banks, hotels, development banks, hydropower, finance companies, insurance companies and others witnessed downfall in their respective indices.