What actually moves a price

There is only one mechanical reason a price moves: at the old price, buyers and sellers no longer balance. If more money wants in than out, the price rises until enough holders are tempted to sell. That is the whole mechanism.

Everything people call a "reason" — earnings, rumours, a policy change, a neighbour's tip — matters only through that channel. A piece of news that changes nobody's willingness to buy or sell moves nothing.

What genuinely moves a share's price?

• Earnings. A quarterly report that beats or misses what holders assumed.
• Dividends and bonus issues. Announcements change what holding the share is worth in cash.
• Interest rates. In a market dominated by banks, rate moves reprice a large share of the index at once.
• Regulation. An NRB or SEBON rule can change an entire sector's earning power overnight.
• Liquidity. How much money is available to invest at all — often the biggest driver in Nepal.
• Sentiment. What people believe others are about to do.

The uncomfortable part

Sentiment is not a lesser force than earnings. In a market the size of Nepal's, a stock can move for weeks on nothing but the belief that it is moving. Pretending this is irrational and therefore ignorable is how people lose money being right.

Chapter 6 takes the first question seriously. Chapter 7 takes the second. You need both, and you need to know which one you are asking.