NEPSE crosses 2700 mark; NRB governor hints at market-friendly monetary policy to fuel next bull run

KATHMANDU – Nepal’s stock market continued its bullish stride on Thursday, with the NEPSE index closing above the 2700 mark for the first time in recent weeks, buoyed by a strong rebound in finance stocks and growing optimism after the central bank governor hinted at a stock market-friendly monetary policy in the upcoming fiscal cycle.

The benchmark index climbed 9.14 points, settling at 2703.02, reflecting renewed investor confidence across key financial sectors. The positive sentiment is further amplified by remarks from Nepal Rastra Bank (NRB) Governor Biswo Nath Paudel, who signaled that the central bank’s upcoming monetary policy would support the capital market, encouraging long-term investments and ensuring better liquidity flow.

While market momentum stayed positive, daily turnover saw a slight dip from Rs. 9.74 billion the previous day to Rs. 9.64 billion. Out of 247 traded companies, 122 posted gains, 125 declined, and the rest remained flat.

The day’s standout performer was the finance sector, which had lagged behind in recent sessions but rebounded sharply with a 4.09% gain. This sharp jump follows several sessions of underperformance and now positions finance as a lead indicator of a potential new bull phase in the market.

Other sectoral gainers included:

Life Insurance: +2.62pc

Non-Life Insurance: +2.24pc

Development Banks: +1.20pc

Banking: +0.31pc

Manufacturing & Processing: +0.39pc

Others: +0.03pc

On the losing end:

Trade: -1.29pc

Investment: -0.77pc

Hydropower: -0.59pc

Microfinance: -0.22pc

Hotels & Tourism: -0.07pc

Top-performing stocks included:

Nepal Finance Ltd.: +10pc

Khanikhola Hydropower: +7.17pc

Samriddhi Finance: +7.08pc

Bhugol Energy: +6.78pc

Sayapatri Hydropower: +6.57pc

On the downside, Saptakoshi Development Bank and Guras Laghubitta hit the lower circuit, each falling 10pc. Dhaulagiri Laghubitta fell 5.55pc, and Panchthar Power dropped 3.79pc.

Stocks with the highest trading volumes included Butwal Power Company, Sahas Urja, Saptakoshi Development Bank, Radhi Hydropower, and NRN Infrastructure.

Analysts say that the Governor’s hint at a capital market-supportive monetary policy has come at a crucial time when investor sentiment was recovering. Market participants are hopeful that easing policy measures could help inject liquidity and attract long-term investment, setting the stage for a sustained bull run.

With finance stocks regaining momentum and policy support expected from NRB, the capital market appears to be entering a new growth phase, potentially testing higher resistance levels in the weeks ahead.

Fiscal Nepal |
Thursday July 3, 2025, 03:44:07 PM |


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