Nepal Stock Market Eyes All-Time High as Confidence Surges Post-Monetary Policy
The NEPSE index is nearing its previous all-time high, buoyed by rising investor confidence, increasing volumes, and favorable monetary policies introduced under new leadership at Nepal Rastra Bank.
The Nepal Stock Exchange (NEPSE) is witnessing renewed momentum following the release of the latest monetary policy, driving investor confidence and pushing the benchmark index closer to its historic high of 3,200 points set four years ago.
Since the appointment of Dr. Bishwanath Poudel as the Governor of Nepal Rastra Bank, the market has responded positively to a series of pro-market policy changes. These include a significant raise in the individual margin lending limit to NPR 250 million, reduction in the interest rate corridor by 0.25%, and regulatory revisions for microfinance dividend caps.
On Monday, July 21, 2025, the NEPSE index rose by 21.77 points to close at 2,892.72, while total turnover reached NPR 16.32 billion, remaining well above the average. The previous day’s turnover was NPR 21 billion, suggesting growing market participation.
According to Santosh Mainali, former president of the Brokers Association of Nepal, the current rally differs from past surges. “This time the market is correcting gradually and growing on stronger fundamentals,” he said. “Increased liquidity in the system and gains in high-cap sectors—especially banking and insurance—are driving the momentum.”
Historically, NEPSE has reached new highs between July and September, and this seasonal pattern appears to be repeating. With improved sentiment, stronger demand, and favorable policy conditions, investors and analysts now anticipate a potential breakout above the 3,200-point threshold.
On the same day, NEPSE’s market capitalization hit a record NPR 4.826 trillion, surpassing the previous high of NPR 4.799 trillion. The rise was fueled by gains in heavyweight stocks like Nepal Reinsurance and Himalayan Reinsurance.
Rajan Lamsal, General Secretary of the Nepal Investors Forum, expressed confidence that a new all-time high could be achieved by mid-September (Bhadra). He noted that “investor psychology, liquidity levels, and falling interest rates are all signaling further upside.”