Nov 23 to Dec 15, 2025: beed’s take on the market

The Nepal Stock Exchange (NEPSE) index rose modestly by 1.39 points (+0.05%) to close at 2,601.61 points during the period from November 23 to December 15. The period started with optimism, with the index reaching an intraday high of 2,693.89 points on November 30. However, this momentum proved unsustainable as the market gradually declined over several consecutive sessions of losses. Toward the end of the review period, the index traded sideways, showing early signs of stabilisation and potential recovery. Market turnover declined 11% compared to the previous review period, which had seen a 25% increase in turnover. This drop in turnover suggests increasingly cautious investor sentiment. (see figure 1)

During the review period, sub-indices delivered varied results. The Manufacturing and Processing, Hotels and Tourism, and Life Insurance sectors gained, while the worst performers were Hydropower, Development Bank, and Trading.

The Manufacturing and Processing sub-index (+9.88%) recorded the largest gain, driven by strong appreciation in the share prices of newly listed companies. Sagar Distillery surged (+Rs 861.2), followed by Shreenagar Agritech Industries (+Rs 834.1) and SY Panel Nepal (+Rs 467.9). The Hotels and Tourism sub-index (+2.33%) advanced with notable gains in Bandipur Cable Car and Tourism (+Rs 93.5), Soaltee Hotel (+Rs 14.1) and Taragaon Regency Hotel (+Rs 10).

The Life Insurance sub-index (+0.96%) also gained with an appreciation in the stock price of Life Insurance Corporation Nepal (+Rs 33.2), Citizen Life Insurance (+Rs 31) and Sun Nepal Life Insurance (+Rs 26).

There was a modest gain in Finance (+0.40%) sector, led by Manjushree Finance (+Rs 80), Guheswori Merchant Banking & Finance (+Rs 30.9) and Multipurpose Finance Company (+Rs 8.2). Non-Life Insurance sub-index (+0.37%) also edged higher, with Rastriya Beema Company (+Rs 80), Siddhartha Premier Insurance (+Rs 52) and Prabhu Insurance (+Rs 6.8) contributing to the increase. The Commercial Bank sub-index (+0.11%) remained nearly flat, with minor gains from Siddhartha Bank and NIC Asia Bank (both +Rs 19), and Nepal SBI Bank (+Rs 14).

The remaining sub-indices declined during the period. Hydropower sub-index (-1.75%) led the decline, weighed down by losses in Sikles Hydropower (-Rs 127.9), Mountain Energy Nepal (-Rs 119.1) and Super Madi Hydropower (-Rs 110). Development Bank sub-index (-1.31%) followed, with decline in the prices of Saptakoshi Development Bank (-Rs 45.9), Corporate Development Bank (-Rs 31) and Shangrila Development Bank (-Rs 27.1). Trading sub-index (-1.25%) also declined as both companies listed under it, Salt Trading Corporation (-Rs 96.9) and Bishal Bazar Company (-Rs 59.1), lost market value.

Additional declining sectors included Microfinance (-0.90%) with a decline in share price of Upakar Laghubitta (-Rs 300.1), Unnati Sahakarya Laghubitta (-Rs 299) and Support Laghubitta (-Rs 157). Others sub-index (-0.89%) also slipped, with Nepal Reinsurance Company (-Rs 75), Nepal Warehousing Company (-Rs 38.1) and Muktinath Krishi Company (-Rs 28) among the losers. (see table 1)

News and Highlights 

Figure 1: NEPSE Index during the review period November 24 to December 15, 2025

Source: Nepal Stock Exchange

During the review period, the major regulatory update was from the central bank. In its First Quarter Monetary Policy Review of FY 2082/83, Nepal Rastra Bank (NRB) reduced the Standing Liquidity Facility (SLF) rate from 6% to 5.75% and lowered the policy rate from 4.5% to 4.25%. The Standing Deposit Facility (SDF) rate remained unchanged at 2.75%. The central bank raised the limit for personal overdraft loans from Rs 5 million to Rs 10 million and increased the ceiling for collateral-based loans provided by microfinance institutions from Rs 0.7 million to Rs 1.5 million. 

NRB also issued a circular amending the Unified Directive, 2081, to introduce more flexible loan classification rules. The changes allow loans to be reclassified as performing once borrowers regularise payments, even after collateral auctions have started. Additionally, the central bank has removed the previous requirement for banks and financial institutions (BFIs) to maintain 100% loss provisioning on non-banking assets from the date of acquisition. Loss provisioning created for sold non-banking assets no longer needs adjustment.

Similarly, the stalled Initial Public Offering (IPO) of Reliance Spinning Mills was resumed after the Patan High Court dismissed a writ petition challenging the issuance. The IPO, which had been suspended since July 2024 following allotments to Qualified Institutional Investors (QIIs), has now progressed to the public offering stage.

Table 1 Sub-indices during the review period November 24 to December 15, 2025

Source: Nepal Stock Exchange

SEBON approved the IPOs for three hydropower companies and one development bank. The IPOs of Bhujung Hydropower (Rs 200 million) and Suryakunda Hydro Electric (Rs 137.9 million) were both approved with Kumari Capital as issue manager. Ridge Line Energy’s IPO of Rs 260.7 million was approved with Prabhu Capital as issue manager. Additionally, SEBON approved the IPO of Salapa Bikas Bank, a development bank seeking to raise Rs 172.4 million with Muktinath Capital as issue manager.

SEBON also added two hotels and tourism companies and one manufacturing and processing company to the IPO pipeline. The hotels and tourism sector includes Maulakali Cable Car (Rs 187.9 million) and Hotel Sabrina (Rs 470.4 million), both with NIC Asia Capital as issue manager. In the manufacturing and processing sector, Nivix Pharmaceuticals plans to raise Rs 137.5 million with Nepal SBI Merchant Banking as issue manager.

Outlook  

The First Quarter Monetary Policy Review of FY 2082/83 demonstrates NRB’s commitment to active liquidity management. While lower SLF and policy rates can reduce borrowing costs and improve liquidity conditions, stock market performance will depend on the flow of this credit into productive investments. The amendment to the Unified Directive, 2081 is likely to ease provisioning requirements for BFIs. This can improve their balance sheet metrics and boost reported profitability. However, these gains may prove short-lived if the underlying quality of loan portfolios does not improve. Meanwhile, more companies are receiving permission to list on the stock exchange through the book-building process. This growing adoption could encourage financially sound companies to go public, strengthening the market’s fundamentals over the long term. 

This is an analysis from beed Management. No expressed or implied warranty is made for the usefulness or completeness of this information, and no liability will be accepted for the consequences of actions taken based on this analysis.