The Nepal Stock Exchange index recovered by 12.96 points on Friday as tensions in the Madhesh region started to calm down following quick government actions.
The stock market, which was under heavy selling pressure due to tense situations in some districts of Madhesh, saw a nice recovery on Friday. The NEPSE index rose by 12.96 points.
In past few days, investors were feeling very anxious and stressed because of developments in Madhesh. This psychological pressure led to high selling in market. People were worried about social and political instability. The tension originally started from Kaptanganj in Sunsari and quickly spread to other places, making people worry if entire Madhesh region would fall into religious conflict. On Thursday, videos and photos of commercial buildings being set on fire in Siraha went viral on social media. This created more fear among public and investors. Many remembered the incident of Bhadra 24, when important structures and business buildings were vandalized across country, which had a big impact on investor mindset.
To bring things back to normal, government took active steps in last two days. Prime Minister Balendra Shah addressed nation on Thursday night and requested everyone to keep peace, patience, and religious harmony. He said government is fully committed to protect citizens and maintaining rule of law.
After that, Home Minister Sudhan Gurung visited Kaptanganj in Sunsari to meet family of the person who lost life in the incident. He tried to solve the issue through talks and mutual agreement.
Today, PM Shah also had meeting with leaders of Madhesh-based political parties. During meeting, he promised that government is committed to development of Madhesh and asked everyone to help maintain peace and social harmony. Because of these fast actions by government, tension is now cooling down and investors are feeling confident again.
The Crucial 2700 to 2705 Zone
On Friday, NEPSE saw a lot of ups and downs. At one point, index dropped to 2,654 points, but later heavy buying came in and market recovered around 30 points to close at 2,685 points.
The daily turnover also increased. On Thursday, shares worth Rs. 3 arba 38 crore were traded, while on Friday it went up to Rs. 3 arba 76 crore.
Meanwhile, in the podcast of Bajarko Chirfar, technical analyst Santosh Singh Lingden mentioned that 2,670 and 2,705 points are very important levels for NEPSE. He explained that if NEPSE crosses 2,705 with good volume, market can go up very fast. But if it falls below 2,670, selling pressure will increase and market might drop to around 2,600 points.
To learn more about these levels, you can also read: Important support and resistance zones to watch out for on NEPSE [With Video].
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
