Political events in Nepal drive stock market returns, impacting investors globally.
The study looked at how the stock market in Nepal reacts to unexpected political events. They found that when good news is announced, stock prices go up, and when bad news is announced, stock prices go down. This happens within 2 to 3 days after the announcement. This shows that the Nepalese stock market is not very efficient when it comes to reacting to political news. There is a strong connection between political uncertainty and how stock prices change.