The Nepal Stock Exchange (NEPSE) has reached a major milestone, with its market capitalization surpassing Rs 5 trillion for the first time in the country’s history. This achievement reflects surging investor interest and a bullish trend in Nepal’s secondary market.
According to NEPSE data, market capitalization jumped by Rs 640 billion over the past month. On June 29, the market cap stood at Rs 4.369 trillion, but it has now soared beyond Rs 5 trillion—a growth largely attributed to rising market confidence and increasing trading activity. During the same period, the NEPSE index climbed from 2,622.28 to over 3,000 points, while the daily turnover surged to an average of Rs 18 billion, up from the previous Rs 5–6 billion.
Market capitalization represents the aggregate market value of all listed companies, offering a snapshot of investor wealth and stock market size. At present, NEPSE’s market capitalization accounts for 82 percent of Nepal’s GDP, which is valued at Rs 6.107 trillion.
Notably, blue chip companies—known for their stability, profitability, and strong reputations—hold Rs 2.319 trillion, or 46.29 percent, of the total market cap. These firms are seen as anchors of the stock market, and their consistent performance has played a key role in sustaining investor trust.
Stockbrokers attribute this market momentum to several factors, including positive reforms in the monetary policy for FY 2025/26, lower bank interest rates, and an expansion in listed companies. The Nepal Rastra Bank’s decision to lower key interest rates—including deposit and lending rates—has made equities a more attractive investment alternative.
Furthermore, the central bank’s relaxed cap on margin loans, increasing the individual limit from Rs 150 million to Rs 250 million, has provided more liquidity to the market. Combined, these measures have boosted investor enthusiasm and contributed to the recent surge in market capitalization.
The NEPSE milestone not only reflects growing investor confidence but also signals the increasing role of the stock market in Nepal’s economic landscape. If current trends continue, analysts believe NEPSE could play an even more prominent role in capital mobilization and long-term economic growth.
