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What Led to the Rout in NEPSE?

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What Led to the Rout in NEPSE?
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August 9: Share market witnessed the unexpected decline on Monday (August 8).  The share market decreased by 88.81 points on Monday. The market which was in decreasing trend since the last week saw the highest drop on Monday. Share analysts have analyzed the current sharp decrease of the NEPSE that was bullishly increasing from the beginning of current fiscal year as abnormal. Earlier, there was normal decrease in the share market as the investors started profit booking during the share market reached its highest point ever.

The decrease was sudden on Monday after some improvements on the last two days. Investors are losing their confidence with constantly decreasing share market. The increasing rumors in market are having psychological impact on the investors. Declining confidence is urging investors to sell their shares which are resulting unusual decrease in market.

However, on Monday investors decided to sell their shares without analyzing the annual report of the companies.  According to the brokers, investors are focusing on declining NEPSE index only. As per the brokers, investors can ensure their profit if they make the investment by analyzing annual reports of the company rather than the current trend and rumors of the market in the current market scenario. Meanwhile, SEBON has issued a press statement asking the investors to make investment wisely rather than following the current rumors in market.

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