Market Correction Seen Ahead of Fiscal Year-End; Investors Eye Rebound in Shrawan
NEPSE dipped by over 35 points amid profit-taking and fiscal year-end pressure; investors anticipate positive momentum from mid-July.
Kathmandu, July 14, 2025 — Nepal’s equity market closed lower on Monday as profit-booking dominated trading sentiment after three consecutive bullish sessions. The NEPSE index dropped 35.09 points, settling at 2,725.71, with a total turnover of Rs 8.17 billion.
The sell-off was largely attributed to investors locking in profits, particularly in the banking and financial sector, which had recently seen heightened interest due to anticipated gains from the upcoming monetary policy. The rally in recent days was driven by expectations that the new monetary policy would adopt a more accommodative stance, encouraging credit expansion and investment.
However, with the fiscal year 2081/82 ending this week, settlement-related constraints have added downward pressure. As brokers face end-of-year compliance obligations, including settlement of margin transactions, retail investors are reportedly unable to transact fully due to credit limits imposed by brokerage firms.
Despite Monday’s correction, market participants remain optimistic. Many investors view the decline as temporary and expect a recovery once the new fiscal year begins in Shrawan. The actual implementation of the monetary policy—deemed flexible and market-supportive—is expected to positively influence sentiment in the coming weeks.
"Investors see this dip as a normal adjustment. Once monetary measures kick in, the market is likely to regain upward momentum," said one NEPSE-based analyst.