NEPSE Hits Four-Year High

The Nepal Stock Exchange (NEPSE) index surged 1.03 percent on Tuesday, 29 July, to close at 3,002.07 points—its highest level in four years.

It also marked the first time since 15 August, 2024 that the index has crossed the 3,000 threshold. That day, it had closed at 3,000.81. The all-time high of 3,198.60 was recorded on 18 August 2021, when the index had also touched an intraday peak of 3,220.33.

The recent rally has gained momentum following the announcement of the monetary policy on 11 July, for the new fiscal year that began on 17 July. The index has since then closed in the green in 11 of the past 13 trading days, rising from 2,731.8 to over 3,000 points.

Nepal Rastra Bank Governor Dr Biswo Nath Poudel has prioritised the capital market and real estate sectors to stimulate economic recovery. Key measures include raising the individual cap on margin loans from Rs 150 million to Rs 250 million. Institutional investors had already seen the ceiling removed earlier, fuelling demand for stock-backed loans.

In a policy review this May, the central bank had also reduced the risk weight on stock loans from 125 to 100 percent, signalling a market-friendly approach.

To ease pressure on banks’ capital adequacy, NRB now allows regulatory reserves from non-banking assets held for up to two years to count as supplementary capital. Banks will also be permitted to raise capital with prior NRB approval.

The monetary policy outlines flexibility in working capital loan guidelines, allowing them to be tailored to sectors such as agriculture, small and cottage industries, education, health, media, and sports—based on their revenue patterns and repayment cycles.

The policy also proposed reviewing the 15 percent dividend cap on microfinance institutions. Those exceeding the cap currently must allocate large portions to reserves, client protection, and CSR funds. The revision suggests some relaxation.

On Monday, NEPSE had edged up 0.23 percent, after falling 0.61 percent on Sunday, ending an eight-day winning streak.

Turnover, however, declined to Rs 18.52 billion from Rs 19.36 billion on Monday and Rs 26.57 billion on Sunday.

Of the 250 companies traded, 176 advanced while 74 declined.

The Sensitive Index rose 0.71 percent, the Float Index 0.96 percent, and the Sensitive Float Index 0.63 percent.

Top gainers included Muktinath Krishi Company Limited (MKCL), Trade Tower Limited (TTL), and Sanvi Energy Limited (SANVI), all of which hit the upper circuit limit. Their last traded prices stood at Rs 1,790.5, Rs 862.70, and Rs 769 per share, respectively.

Samata Gharelu Laghubitta Bittiya Sanstha Limited (SMATA) was the day’s biggest loser, falling 8.60 percent to Rs 1,148.84 per share.

Himalayan Distillery Limited (HDL) led turnover with Rs 644.13 million in transactions, followed by Green Ventures Limited (GVL) with Rs 638.24 million and Nepal Reinsurance Company Limited (NRIC) with Rs 569.21 million.

Among the 13 sectoral indices, 10 gained while 3 closed in the red. The Development Bank Index fell by 0.36 percent, the Finance Index by 0.12 percent, and the Trading Index by 0.25 percent. The Others Index posted the highest gain at 2.58 percent.

Market capitalisation rose to a record Rs 5,009.46 billion, up from Rs 4,958.13 billion the previous day.