Nepal, April 19 -- The Nepal Stock Exchange (NEPSE) is as dramatic and misleading as Nepali politics. Following a sudden change in the government and the emergence of a new coalition on March 4, NEPSE made some unnatural moves on its already random track. It soared up and closed with three consecutive bull circuits as quickly as the market opened on March 4 and reached 2,100 points on March 14. With these came the arguments that the unusual movement was a positive gesture towards the leftist coalition. However, it started losing momentum and has plunged consistently since.

The stock market's reaction to political changes is always irrational. Changes in government and political ideology inevitably influence the market due to shifts in po...