SATV 14 July, Kathmandu: The capitalization of Nepal Stock Exchange (NEPSE), also considered the barometer of the economy, has increased by nearly Rs 1.2 trillion over the span of about a year. Due to rising investor attraction, entry of new companies, and market growth, NEPSE's market capitalisation increased by Rs 1.202 trillion over a 13-month period.
By mid-June 2024, when the NEPSE index stood at 2,112.30 points, the market capitalization was Rs 3.349 trillion. By mid-June 2025, with the NEPSE index reaching 2,655.39 points, the market capitalization had risen to Rs 4.423 trillion. On July 10, when the market closed, market capitalisation had reached Rs 4.551 trillion. On that day, the NEPSE index had climbed to 2,731.80 points.
NEPSE Spokesperson Murahari Parajuli said that the increase in value had driven the growth in market capitalisation. “This year, NEPSE’s capitalisation ranged from a minimum of Rs 3.45 trillion to a maximum of around Rs 4.80 trillion,” said Parajuli. “It’s the value that has increased more than the number of shares.” In the current fiscal year (FY) 2024/25, the highest market capitalization was on March 2, at Rs 4.799 trillion, while the lowest was on July 10, at Rs 3.45 trillion.
Stakeholders say signs of economic recovery have positively impacted the stock market. Former president of the Investor Forum, Ambika Paudel, stated that since stock markets react first to economic activity, capitalisation has grown. “Improvement in economic growth, increased revenue, and a rise in imports and exports have rejuvenated the market,” Paudel said, “With the entry of new companies, the market has expanded.” He claimed that this market growth is natural. “The new monetary policy could trigger further growth,” he added.
According to Nepal Rastra Bank (NRB), the economy is gradually gaining its former rhythm. Inflation is within the desired limit. The rise in remittance inflow, foreign tourist arrivals, and exports has boosted foreign currency reserves. Economic sectors that were in contraction for the past two years are now expanding, and the growth rate has improved compared to the previous year. These changes have had a positive impact on the stock market.
The monetary policy for the upcoming FY 2025/26, released on Friday by NRB, has increased the margin loan limit on shares from Rs 150 million to Rs 250 million per individual from banks and financial institutions. Share traders can now borrow up to Rs 250 million in total by pledging shares across multiple institutions. This is expected to increase investment in stocks and boost investor confidence.
Governor Poudel’s monetary policy also appears favourable for the stock market. As the policy emphasizes reducing interest rates, experts believe it will have a positive impact on the market.
By mid-June 2025, the number of companies listed on the NEPSE had reached 272. Among these, 132 are banks, financial institutions, and insurance companies; 91 are hydropower companies; 23 are manufacturing and processing industries; seven are hotels; seven are investment companies; four are trading companies, and eight fall into other categories.
