Beed’s take on the market : July 3 to July 24, 2026

The Nepal Stock Exchange (NEPSE) index gained 81.20 points (3.06%) during the review period from July 3 to July 24, closing at 2,734.60 points. After an initial decline that saw the index touch an intraday low of 2,546.69 points on July 14, the market staged a strong recovery, reaching an intraday high of 2,754.08 points on July 21 before settling at 2,734.60 points at the close of the review period.

Market turnover rose by 20.21%, reversing the 12.79% decline recorded in the previous review period. The simultaneous increase in both the index and market turnover suggests an improvement in investor confidence during the period.

All 11 NEPSE sub-indices recorded gains during the review period. The Manufacturing and Processing, Others, and Commercial Bank sub-indices posted the strongest advances, while the Microfinance and Finance sub-indices registered comparatively modest gains.

The Manufacturing and Processing sub-index recorded the highest increase of 4.70%, led by gains in the newly listed Everest Colour (+Rs 651.1). Other contributors included Reliance Spinning Mills (+Rs 294.0) and Shreenagar Agritech Industries (+Rs 202.7). The Others sub-index rose by 4.15%, driven by gains in Muktinath Krishi Company (+Rs 82.1), Pure Energy (+Rs 72), and Nepal Reinsurance Company (+Rs 46.0).

The Commercial Bank sub-index advanced by 3.72%, supported by gains in Everest Bank (+Rs 24), Nabil Bank (+Rs 23.1), and Siddhartha Bank (+Rs 19.9). The Development Bank sub-index climbed 3.38%, led by Salapa Bikas Bank (+Rs 145), Green Development Bank (+Rs 48), and Narayani Development Bank (+Rs 32). The Hydropower sub-index gained 3.35%, with Snow Rivers (+Rs 288.4), Kalanga Hydro (+Rs 210.6), and Sanigad Hydro (+Rs 156.3) emerging as the top performers.

The Hotels and Tourism sub-index rose 2.33%, buoyed by gains in Hotel Forest Inn (+Rs 52), Kalinchowk Darshan (+Rs 43.9), and Bandipur Cable Car and Tourism (+Rs 17).

The Trading sub-index gained 1.89%, with both of its constituents posting increases. Bishal Bazar Company (+Rs 89) and Salt Trading Corporation (+Rs 5) both recorded gains during the period.

The Life Insurance sub-index increased by 1.75%, with gains across its major constituents. Nepal Life Insurance (+Rs 24.5), National Life Insurance (+Rs 15), and Life Insurance Corporation (Nepal) (+Rs 14) were the primary contributors. The Non-Life Insurance sub-index advanced by 1.48%, led by Rastriya Beema Company (+Rs 200.2), IGI Prudential Insurance (+Rs 19.8), and United Ajod Insurance (+Rs 17).

The Microfinance sub-index rose by 0.91%, supported by gains in Jeevan Bikas Laghubitta Bittiya Sanstha (+Rs 38), Swastik Laghubitta Bittiya Sanstha (+Rs 38), and Himalayan Laghubitta Bittiya Sanstha (+Rs 31.9).

The Finance sub-index recorded the smallest increase of the review period, rising 0.13%. The gains were led by Central Finance (+Rs 37.2), Manjushree Finance (+Rs 21.9), and ICFC Finance (+Rs 13).

News and Highlights

On July 7, Nepal Rastra Bank (NRB) unveiled its Monetary Policy for Fiscal Year 2026/27, maintaining its cautiously flexible monetary policy stance while leaving key policy rates and liquidity provisions unchanged. The policy proposed reclassifying banks and financial institutions, expanding digital banking services, easing personal guarantee liability and cheque-blacklisting provisions, and introducing a risk-based framework for share-backed lending limits based on the financial strength of listed companies. NRB also projected inflation at 5.5%, private sector credit growth at 11%, and broad money growth at 14%.

On July 14, the Securities Board of Nepal (SEBON) released its Policy and Programme for FY 2026/27 alongside the Capital Market Development Blueprint 2026, which outlines a roadmap for capital market reforms through 2036. Key initiatives include stricter scrutiny of initial public offerings (IPOs), greater oversight of finfluencers and investment-related content on social media, the introduction of a free-float benchmark index, operationalisation of margin trading in coordination with NRB and the Nepal Stock Exchange, and measures to promote corporate and green bonds as well as listings by small and medium enterprises (SMEs).

To implement commitments outlined in the monetary policy, NRB issued directives on July 15 introducing a risk-based framework for share-backed lending. While retaining the existing 70% loan-to-value (LTV) ceiling, the new framework allows financing of up to 80% LTV for shares of financially stronger listed companies that meet prescribed eligibility criteria.

On July 20, Prime Minister Balendra Shah met with stakeholders from the capital market and insurance sectors to discuss a range of proposed reforms. These included allocating 40% of IPOs to qualified institutional investors through the book-building process with a six-month lock-in period, allowing employee, local, and institutional shares to become tradable upon listing, introducing short selling, intraday trading, and securities lending and borrowing, permitting banks to invest core capital in equities, and reviewing the capital gains tax regime.

Outlook

The new fiscal year has begun on a positive note, with supportive policy announcements from the government and encouraging regulatory action by NRB. These developments were reflected in the market’s recovery from its intraday low of 2,546.69 points to close the review period higher. Gains across all 11 sub-indices, coupled with a rebound in market turnover, indicate strengthening investor confidence. Sustaining this momentum, however, will depend on the timely and effective implementation of the proposed reforms.

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.