For more than two and a half months, the Nepali stock market has been sinking with no sign of recovery. Investors are watching quietly, confused about what they should do next.
Fading market excitement
The Nepali stock market once buzzed with energy, but that excitement has slowly disappeared. With over 7.1 million Demat account holders, trading has now gone global—many Nepalis in countries like South Korea and Japan buy and sell shares online. Yet, despite the easy access, the market feels lifeless.
According to Nepal Rastra Bank, stock-related loans have now reached Rs 1.45 trillion, which is about Rs 20 billion more than during the last market boom.
Easier policies, but no spark
Regulators have tried to make things easier. Nepal Rastra Bank has relaxed several policies, including removing the Rs 25 crore loan cap and the 15-minute weighted average rule. A new finance minister has also received reform suggestions from a task force, and some of them are being implemented by the Securities Board.
Still, these steps haven’t revived investor confidence.
Falling numbers everywhere
Interest rates, inflation, and liquidity levels are at historic lows—conditions that usually help the market. But NEPSE has dropped from above 3,000 points in mid-July to just 2,505 points now.
The market has fallen nearly 17% from its recent high. Daily transactions have shrunk to around Rs 3 billion, the lowest level since late September.
Why are investors turning away?
Analysts say investors are losing interest because of growing political instability. Many are now drawn toward safer assets like gold and silver—just as investors around the world do during uncertain times.
A large portion of Nepali traders operate from abroad, and many may have shifted their focus to foreign markets or commodities after losing faith in Nepal’s stock market.
What are investors waiting for?
Even though most economic indicators look positive, other events have shaken confidence. The recent Gen Z protest, floods, and landslides affecting hydropower projects have caused uncertainty in several sectors, including insurance and banking.
Now, investors are waiting for clear political direction. The government has announced election dates, but major parties haven’t fully committed to participating. Some brokers even fear a repeat of past political boycotts.
Until the political situation becomes clear, investors seem to be waiting—unsure whether to take risks or stay still.
