After a long period of decline, the Nepali share market is showing strong signs of recovery. Following the Tihar festival, NEPSE has gained in four of the last five trading days, raising investors’ hopes for a bullish phase.
The market had earlier suffered due to the Gen Z movement, which led to closures and heavy losses for investors. Many had lost confidence after repeated declines. But now, things seem to be turning around.
Market experts say that several positive factors are working together to push NEPSE upward. Improved government policies, strong remittance inflow, and reduced interest rates are giving investors a reason to believe again.
Former president of Nepal Investors Forum, Chatelal Rauniyar, said the central bank’s friendly policies have been a key driver of this growth. “Remittance inflow has reached around Rs 3.5 trillion, foreign reserves are strong, and the banking sector has enough liquidity,” he said. “With lower interest rates and renewed confidence, investors are now ready to re-enter the market.”
Rauniyar also pointed out that the Nepal Rastra Bank’s removal of the Rs 25 crore share loan limit has encouraged more trading activity. “Banks and mutual funds have already started buying shares actively. This support will likely keep the market strong,” he added.
Ghanshyam Pandey, president of the Nepal Shareholders Association, believes that NEPSE will continue to rise as investors’ confidence grows. “The festival season spending is over, and money is flowing back into the stock market,” he said. “Dividend season is here, and many listed companies are yet to announce their returns, which could push prices higher.”
He further mentioned that the psychological impact of the Gen Z movement is fading away. “The market moves with investor sentiment. Now that things are calmer politically, confidence is improving,” he added.
Pandey explained that the market has already touched its lowest point and now has enough technical strength to move up. “Liquidity in banks is high, and investors have easy access to funds. There are no major barriers left for market growth,” he said.
Current Nepal Investors Forum president, Tulsiram Dhakal, also sees this as a great opportunity for investors. “With policy reforms, liquidity above Rs 11 trillion, and easing credit rules, the market has strong support to climb higher,” he said.
Dhakal believes that even the political environment is improving. “The Gen Z protests are over, the next elections are set for February, and investors believe the next government will prioritize economic growth,” he explained.
According to him, this is the perfect time to invest. “Stock prices of major companies are still at low levels. Anyone investing now in strong financial institutions could see great returns in the short term,” he added.
With liquidity high, interest rates low, and investor sentiment turning positive, experts agree that NEPSE is now on the path toward a bullish rally. The only uncertainty left is political stability if that remains calm, the market could finally take off.
