Why NEPSE index lost 2.13% today, in the first trading hour ?

Today, from the very first hour of trading, selling pressure on NEPSE was huge. NEPSE index which had opened today at 1307 points, lost around 2.13% in the first trading hour and at around 12 noon it got support at 1,280, and we saw retracement up to 1299, then again it turns downward by losing 1.90%. NEPSE index currently stands at around 1282 points at 1:45 pm.

Exploring causes for NEPSE bearish movement.

After the big announcement of keeping bonus (right) share cost price at Rs 100 and charging CGT at bonus (right) share irrespective of investors overall profit or loss by the government, moved NEPSE index downward. Government is not getting enough tax from true CGT as majority of investors were in loss, so they come with new plan, which is sure to make income despite of investors loss. This is a worst kind of government attitude towards an investor.

This announcement builds negative sentiment in the public and as a result NEPSE index slide downward. Now the NEPSE index is trading below the phycological level of 1300 points which can act as a strong resistance in future.