The market had nosedived on Tuesday amid rumors that the Indian government was planning to seal its border points.
"Tuesday's fall was unnatural. Panic-stricken investors were selling securities because of the fear that India was imposed a blockage," Anjan Raj Poudyal, former president of Stock Brokers Association of Nepal (SBAN), told Republica. "After India clarified that it has not decided to impose trade embargo, the market recovered today as most of the market fundamentals are positive.
The stock market went on a freefall from early trading hours on Tuesday amid news reports that India has imposed trade embargo. "Investors were seen more restrained today as the news reports were proved baseless," Poudyal, who runs Thrive Brokerage House, said.
Narendra Sijapati, managing director of Kalika Securities Company, also attributed the volatility of stock market to news reports about Indian embargo. "Investors were panicked by baseless news about trade embargo on Tuesday," Sijapati said. "The market recovered after it was clear that India has no such plan."
All trading groups ended on the green zone on Wednesday. Insurance was the biggest gainer of the week as its sub-index jumped by 101.92 points. Hotels group followed suit, gaining 41.3 points to close at 1,927.28 points.
Banking, the heavyweight trading group in the secondary market, also saw its sub-index go up by 35.93 points to close at 1,119.54 points. Hydropower group also ended 30.45 points higher to close at 2,069.85 points. Sub-indices of Manufacturing and Processing, and Development Bank groups also went up 10.37 points and 9.03 points, respectively, to close the day's trading at 2,047.28 points and 953.61 points.
'Others' and Finance groups also gained 3.53 points and 1.82 points, respectively, to end trading at 781.26 points and 562.57 points.
A total of 804,115 units of shares of 117 companies worth Rs 498.81 million were traded in the market on Wednesday through 2,312 transactions.
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