Nepal’s stock market hasn’t made headlines lately, but something’s been brewing behind the scenes. After struggling for a long time, the NEPSE index might be slowly gathering the energy it needs to beat its old record.
Back in 2078, NEPSE had reached a peak of 3,200 points. Since then, it dropped hard falling to around 1,800 due to strict financial rules and a tough economy. But things may finally be turning around.
The new monetary policy from Nepal Rastra Bank has given investors a reason to smile. One key change was increasing the loan limit for share collateral from Rs. 15 crore to Rs. 25 crore. That alone has brought fresh energy to the market.
At the same time, lower interest rates and better liquidity in banks are helping as well. More money is flowing, and it’s looking for places to grow including the stock market.
People are starting to feel more confident. Analyst and stock market expert Kushal Niroula from AllStocksInfo says this confidence is what drives the market more than anything else.
According to him, the market works in cycles. We had a long bearish phase. Now, signs are pointing to the start of a bullish trend. He says small ups and downs might come, but the bigger picture looks strong.
He believes NEPSE could pass the 3,200 mark again, and even go higher. But this won’t happen all at once. The market needs time and patience.
In 2078, many believed the market would go past 3,200, but it didn’t. The central bank’s tightening policies and weak investor confidence stopped that rise. Now, with softer policies and stronger sentiment, the situation looks different.
Rajouria explains that when investors start believing in the market, it creates momentum. That momentum builds over time and can push the market higher.
Technical views say the same
Technical analyst also sees a similar trend. He says NEPSE has already moved into a bullish zone. While he doesn’t expect an instant jump to 3,200, he does think it’s possible over time.
Dhungana says technical indicators are only part of the story. Market movement is also tied to human psychology. The more positive people feel, the more likely the market is to grow.
Two types of investors, one goal
Right now, both short-term traders and long-term investors are showing interest. Trading volume has picked up, and buying pressure is increasing. That’s a good sign.
Even if small corrections appear in the coming days, it could be a part of the market’s healthy recovery. If the current mood continues, NEPSE might just break its past record and move toward a new high.
The market likely won’t rise in a straight line. There will be pauses and pullbacks. But the foundation is stronger now than it has been in years.
The next few months could be key. If policies stay supportive and investor trust continues to grow, NEPSE might not just recover but reach new heights.
