Expert Speak: Does political tension really affect the NEPSE index?

Despite the political tension and protests in different part of the country the NESPE index has maintained itself at a level of 1183.76. ShareSansar August 31: Niraj Giri Director, SEBON (Securities Board of Nepal) In the context of a developed country, the political situation of the country is directly related to the Stock market, but in case of Nepal, the relation between the political factor and stock market is more in an indirect way.  There are two important reasons for this. Firstly, the stock market here is a market of retail investors, unlike developed countries where institutional investors rule the stock market. Secondly, the share market is dominated by the banks and financial institutions sector and the political situation doesn’t seem to affect this sector. Bhakti Ram Ghimire Managing Director,  Imperial Securities Company Private Limited (Broker No. 45)    There are many factors that affect the share market and the political situation is definitely one of them, but change  in a single factor won't have a huge effect in the market. At present there are many other factors that are suppressing the political factor like the monetary Policy for Fiscal Year 2015/16, requiring banks and financial institutions (BFIs) to increase minimum paid-up capital by as much as four times over the next two years and also the news regarding the increment of paid up capital of insurance companies, seems to be keeping the market optimistic. Although, there is  political tension and protests in different parts of the country, but the general public have confidence that the constitution will be released on time.