Fiscal Nepal
First Business News Portal in English from Nepal
Nepal stock plungs nepse
KATHMANDU: Nepal’s stock market plunged by nearly 30 points on Wednesday as investors reacted negatively to the Nepal Rastra Bank’s newly unveiled monetary policy, with uncertainty over margin lending provisions dampening market sentiment.
The benchmark Nepal Stock Exchange (NEPSE) index dropped 29.98 points, or 1.13%, to close at 2,621.86, erasing gains made in recent sessions as selling pressure intensified across most sectors.
Market breadth remained overwhelmingly negative, with share prices of 248 companies declining, while only 24 companies posted gains. The share prices of five listed companies remained unchanged during the day’s trading.
A total of 8.4 million shares of 362 listed companies changed hands in 4.82 billion worth of transactions.
Debt securities dominated trading activity. The 11% KBL Debenture emerged as the most actively traded instrument, recording transactions worth Rs 620 million. It was followed by the 9.5% NCC Debenture, which posted turnover of Rs 430 million, and the 8.5% Sanima Debenture with trades worth Rs 210 million. Shares of Ankhu Khola Jalvidhyut Company generated trading worth approximately Rs 130 million.
The sharp decline came a day after Nepal Rastra Bank (NRB) released its monetary policy for fiscal year 2026/27, which largely maintained its existing monetary policy stance while announcing several regulatory reforms.
One of the provisions that drew the market’s attention was the central bank’s announcement that it would set a limit on share-backed loans based on the financial strength of lending institutions. However, the monetary policy did not specify what the new lending ceiling would be or how it would be implemented.
The absence of clear details created uncertainty among investors, many of whom had expected the central bank to introduce more supportive measures for the capital market.
Market participants said the lack of clarity over the future framework for margin lending prompted investors to book profits and reduce exposure, resulting in broad-based selling across the market.
Although the monetary policy retained key policy rates and maintained an accommodative stance aimed at supporting economic growth, investors appeared disappointed that it did not include concrete measures to boost liquidity in the secondary market or provide immediate relief for the equity market.
Analysts said the coming days will determine whether Wednesday’s decline represents a short-term reaction to policy uncertainty or the beginning of a broader market correction, as investors await further clarification from the central bank on the implementation of its new share-backed lending framework.
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