NEPSE index soared 53 points as all sectors turned green after the buzz about finalization of Dr. Bishwo Poudel as the new Governor of Nepal Rastra Bank. What does this mean for investors and the Rs. 4.4T market?

The NEPSE Index just had a breakout moment, and the reason might be a single name: Dr. Bishwo Poudel.

After months of speculation and delay, the Supreme Court cleared the way for Dr. Poudel to become the next Governor of Nepal Rastra Bank (NRB), rejecting a writ filed against his potential appointment. For investors, this wasn’t just legal housekeeping, it was the sign they had been waiting for.

Today, on Jestha 6, 2082 (May 20, 2025), the market responded with a roar.

NEPSE surged 53 points to close at 2681.36, and for the first time in months, all 13 sector indices turned green. That kind of across-the-board rally doesn’t happen by accident, it happens when the market gets a shot of confidence, and today, that came in the form of clear leadership at the central bank.

But the excitement goes deeper than a single day.

According to the latest report by Nepal Rastra Bank, the total market capitalization of NEPSE hit Rs. 4,425.40 billion as of Chaitra 2081. 

That’s more than Nepal’s entire annual budget and nearly 90% of its GDP.

And if you divide that by population? You’d get nearly Rs. 140,000 per person in market value.

So, what’s really going on?

Where is this massive market heading next, and what does the return of central bank leadership mean for sectors like hydropower, investment firms, banks, and tourism?

In this article, we’ll unpack:

• Which sectors are rising, and which are quietly losing ground
• How IPOs and new listings are reshaping the stock market
• What NEPSE’s Rs. 4.4 trillion milestone tells us about the broader economy
• Why Bishwo Poudel’s appointment matters so much to investors
• And what all this means for you, whether you’re a beginner or a seasoned market watcher

Let’s dive into the most important day the Nepali stock market has seen in a while and what got us here.

NEPSE 101: A Super Simple Explainer 

If the term NEPSE index sounds intimidating, you’re not alone.

Think of NEPSE like a health check-up report for Nepal’s stock market. Just like your doctor tracks your body temperature, blood pressure, and sugar levels to gauge your health, NEPSE tracks the prices of listed company shares to gauge how the market is doing overall.

When people say “NEPSE went up”, they mean the value of most shares increased, investors are feeling confident, more people are buying, and prices are rising. If NEPSE drops, it means prices fell, sentiment is down, and people may be rushing to sell.

The NEPSE index closed at 2681.36 today, Jestha 6, 2082. This number is calculated based on the market prices of selected companies weighted by their market capitalization. So, when big companies’ share prices move, the index also moves noticeably.

Now, what about the NEPSE chart?

A NEPSE chart is just a visual of this index over time. If you’ve ever seen a line graph going up and down like a roller coaster, that’s the NEPSE chart. It helps you see trends:

• Is the market on a steady rise (bullish)?
• Is it falling rapidly (bearish)?
• Is it wobbling without direction (sideways)?

So, when investors say they’re “tracking NEPSE,” they’re really watching that chart to understand the mood of the market. And whether you’re a curious newbie or a casual observer, understanding this index gives you a simple but powerful way to grasp how the economy, and investors, are feeling.

In the next part, we’ll go deeper into where this Rs. 4425B is being parked: Who’s winning the race; banks, hydros, or new-age investment firms? And what does that mean for the future of the Nepali stock market?

A Market Divided: Who Owns the Rs. 4425 Billion?

So, NEPSE is worth around Rs. 4,425 billion.

But here’s the interesting question: Where is that money actually parked? Who are the real market kings of Nepal?

Let’s break it down using the data from the first nine months of the current fiscal year:

Now let’s make this more relatable:

• Imagine Nepal’s entire share market is a big Rs. 100 note.
  
   
  • Rs. 53 of that is sitting inside banks and insurance companies.
    
     
  • Rs. 15 has been plugged into hydropower.
    
     
  • Rs. 8 is in investment firms (yes, the ones trying to become the “mutual funds of Nepal”).
    
     
  • And the remaining is scattered across trading, factories, hotels, and a few wildcard sectors.
    
     

Even though banks still dominate, there’s been a visible shift in where new money is flowing. Just a few years ago, hydropower barely made a dent. Now? It’s commanding real respect, and investor attention.

But why?

Because with dozens of new hydropower IPOs in the pipeline (more on that shortly), more and more investors are placing their bets on Nepal’s natural resource story.

Investment companies too are rising fast. Why invest in one company when you can invest in a company that invests in many? (Sounds meta, but it’s gaining popularity.)

In short, NEPSE is no longer just about banks. It’s getting diverse, and that’s a good thing.

What’s Hot in 2025? Let the NEPSE Chart Speak

Let’s zoom into today (Jestha 6, 2082), the day market bulls ran wild.

NEPSE shot up 53 points to close at 2681.36, riding on the buzz that Nepal might finally get a new NRB Governor. Investors love clarity, and any signal that the financial system might get more direction instantly lights up the NEPSE chart.

But this wasn’t a fluke. It followed another green day on Monday, and here’s what made Tuesday even more exciting:

13 Out of 13 Sector Indices Went Up

Yup, every single sector closed positive; something that doesn’t happen often. Leading the charge were:

Hotels leading the charge might sound odd, but it’s a sentiment signal. When investors feel good about tourism, it usually means they’re optimistic about the overall economy.

Hydropower, as expected, had several big movers:

• Radhi Hydropower topped the turnover chart with over Rs. 41 crore in trades.
  
   
• Ngadi Group Power and Universal Power also recorded massive volumes.
  
   
• Rapti Hydro saw nearly a 10% price surge.

Meanwhile, three stocks hit positive circuit levels, including:

• Sindhu Development Bank
• Saptakoshi Development Bank
• Om Megashree Pharmaceuticals

On the flip side, newly listed Win Nepal Laghubitta (via FPO) saw a sharp 3% drop, proving that not every new listing guarantees a rally.

 This shift tells us something important: investors are no longer just playing it safe with banks. They’re taking more interest in sectors like hydropower, tourism, and investments, where there’s more potential for growth.

It’s like Nepali investors are finally saying, “Let’s try something new.”

Also noteworthy: While the NEPSE index rose, total turnover actually fell slightly from Monday from Rs. 7.35 billion to Rs. 7.31 billion. That means fewer people traded, but prices still moved up, a sign of selective buying in high-conviction sectors.

The Rs. 52 Billion Question: Who Got Listed?

Within the first nine months of FY 2081/82, NEPSE saw new entries worth Rs. 52 billion join the NEPSE stage. These aren’t just random numbers, they tell us where companies and investors are focusing their attention.

So, what exactly got listed between Shrawan and Chaitra 2081?

Here’s the breakdown:

Let’s make that simple:

• Bonus shares = extra shares given to existing shareholders for free (like a dividend, but in shares)
• IPOs = first time a company sells its shares to the public
• Right shares = offered to current shareholders to buy more at a discounted rate
• FPOs = when already-listed companies raise more money by issuing new shares

So, who’s issuing all this? A mix of hydropower companies, microfinance institutions, and a few investment firms, sectors that are actively growing and attracting public interest.

What this shows is simple: even though big banks still hold most of the market value, the action is shifting. Hydros, MFIs, and investment firms are raising fresh capital and going public, and people are investing.

What’s Next? The IPO Pipeline is Packed  

Think the IPO rush is slowing down? Not even close.

As of Jestha 5, 2082, over 75 companies are sitting in the IPO pipeline, meaning they’ve already applied, but are still waiting for final approval from the Securities Board of Nepal (SEBON).

Now here’s where it gets interesting:

Hydropower dominates the pipeline.
More than 30 hydropower companies are queued up, from large players like Solu Hydropower (Rs. 2 billion) and Siuri Nyadi Power (Rs. 3 billion+), to many small and mid-sized projects. This shows just how central the energy sector has become in Nepal’s investment landscape.

Hotels and tourism companies like Hotel Forest Inn, Akama Hotel, and Bandipur Cable Car are also preparing to go public.

Investment firms and development banks are part of the mix too.

So, what does this tell us?

The IPO pipeline reflects where future capital and investor attention is headed. It’s less about big banks now, and more about hydropower, infrastructure, tourism, and diversified investments.

For retail investors, especially those just getting started, this opens up a lot more variety. You’re not just choosing between banks anymore. You can now back companies that are building roads, powering homes, or boosting tourism in remote corners of Nepal.

In short: NEPSE is slowly becoming a more balanced and opportunity-rich market, and this IPO pipeline is one of the best signs of that.

Where Are Investors Putting Their Money Right Now?

Looking at the most recent monthly report published by NEPSE, here’s where investors seem to be buying and selling shares the most:

(Source: NEPSE, Chaitra 2081 Trade by Sector Report)

Now let’s translate that into plain language:

Hydropower is clearly the crowd favorite. Investors traded more than Rs. 32 billion worth of hydro shares, that’s nearly 5 times more than banks! This shows growing confidence in Nepal’s energy sector, especially with so many hydropower IPOs on the horizon.

Investment companies aren’t far behind, with Rs. 12.27B in trades, they're quietly becoming a serious player in the market. These companies invest in various projects or businesses, which is great for investors who want exposure to multiple sectors at once.

Banks and development banks are still active but no longer hogging all the attention. It’s like your favorite old restaurant. Still good, but not the only place in town anymore.

Hotels and tourism stocks also saw action, likely due to renewed optimism about travel and hospitality after pandemic-era slowdowns.

This shift in trading patterns tells us something important:

Nepali investors are diversifying.
They’re not just banking on banks. They’re exploring energy, infrastructure, and long-term growth sectors.

That’s a sign of a maturing market.

Who Rules NEPSE? Meet the Top 10 Giants

Let’s now talk about the real heavyweights; the companies with the biggest market capitalization in NEPSE.

Market cap basically means:
 How much is this company worth on paper based on its share price and number of shares?

As of Chaitra 2081 (March–April 2025), here are the top 10 biggest players in NEPSE:

(Source: NEPSE Top 10 by Market Cap Report, Chaitra 2081)

What does this tell us?

• Banks still hold their ground, but they’re sharing the spotlight now.
  
   
• Reinsurance companies like Nepal Re and Himalayan Re have climbed fast, thanks to the growing insurance market and investor faith in risk management firms.
• Hydroelectricity Investment Company (HIDCL) making it to the top 10 shows just how influential the energy sector has become.
• And yes, Bishal Bazar, a historic trading company, surprisingly sits at the top. While its shares rarely trade, the low supply and high book value give it a massive market cap on paper.

In short: NEPSE’s power circle is expanding.
It’s no longer just banks in suits. It's now energy companies, reinsurance giants, and long-term investment firms too.

What’s Fueling the Rise of the NEPSE Index?

Let’s bring things right up to today, Jestha 6, 2082 (May 20, 2025).

The NEPSE index jumped by 53 points, closing at 2681.36, continuing a two-day winning streak. All 13 sectoral indices went up! This rarely ever happens 

But why did it happen?

Well, today’s Boost Wasn’t Random. Here’s What Drove It:

 1. A Governor, Finally, And Investors Loved It

For months, the market had been stuck in “wait and see” mode, waiting for the government to appoint a new Governor of Nepal Rastra Bank.

Today, the uncertainty finally started to clear.

The Supreme Court upheld a decision not to register a writ petition against economist Dr. Bishwo Poudel’s appointment, removing a big legal roadblock. Dr. Poudel is widely seen as experienced, credible, and financially sound, someone who understands both planning and policy.

That news alone gave investors a sense of relief, a sign that we might finally get some clarity on interest rates, liquidity, and capital market policies. The message was simple: Leadership is coming. Stability might follow. And that’s all the market needed to hear.

2. Money Is Getting Cheaper

Interest rates are dropping, and that’s changing everything.

Compared to last year:

• Commercial banks’ rates have dropped from 10.55% to 8.22%
• Development banks: from 12.17% to 9.59%
• Finance companies: from 13.36% to 10.40%

So what does this mean in real life?

Borrowing is easier. Fixed deposits feel less rewarding. People are asking: “If I’m not getting much from the bank, why not invest in the market?”

And that’s exactly what’s happening. With more liquidity floating around, some of it is naturally landing in NEPSE.

3. Hydropower Is the Star of the Show

If you looked at today’s trading board, one thing was clear: hydropower stole the spotlight.

• Radhi Hydropower topped the turnover list with over Rs. 41 crore
• Ngadi Group Power and Universal Power were close behind
• Rapti Hydro saw nearly a 10% price surge

And it wasn’t just hydro. Hotel and tourism stocks were up 3.42%, development banks up 2.95%, and the investment and finance sectors also saw strong gains.

This wasn’t random excitement. Investors clearly chose their plays, and they went for sectors that have long-term potential and solid IPO pipelines.

But Here’s the Catch:

Not everything was glowing.

Even with the index rising, turnover actually dipped slightly from Monday (Rs. 7.35B to Rs. 7.31B). So yes, prices went up, but fewer people were actively trading. This suggests the rally was driven by selective confidence, not mass participation.

And if you zoom out, Chaitra 2081 saw a 46% drop in total monthly turnover compared to the previous month. So today’s green rally, while impressive, is still fragile.

The market’s mood can shift quickly, especially when politics, policy, or leadership come into play.

So, What’s the Real Story?

It’s not just that NEPSE went up today. It’s why it went up, and how people responded.

The market needed a sign. It got one.

The legal green light for Dr. Bishwo Poudel’s appointment gave investors hope that things might finally start moving, that someone will take charge of monetary policy again. Combine that with cheaper money and sector-specific momentum, and the rally starts to make sense.

But let’s not get carried away. The rally is real, but the work is just beginning.

NEPSE’s growth will only be sustainable if it’s backed by good governance, smarter regulation, and more tools to help people invest wisely.

Final Thoughts

For the longest time, the stock market felt like something far away. A playground for banks, brokers, and boardrooms. But not anymore.

Today, we’re seeing more and more hydropower companies raising money from the public. Hotels preparing to list their shares. Investment firms gaining traction. New names rising in trading charts. And young investors opening their first accounts on their phones, often with just Rs. 1,000 and a lot of curiosity.

NEPSE is changing. It’s getting wider, deeper, and more reflective of what’s actually happening in the country.

This week’s rally? It’s not just about one news headline or one appointment. It’s about people watching closely. Believing again. Taking chances. And slowly starting to see the market not as a gamble, but as a window into how Nepal is growing; sector by sector, company by company, investor by investor.

If you’ve made it this far in the article, you already care more than most. You’re not just looking for stock tips. You’re trying to understand how things work.

And maybe that’s the biggest signal of all.
That the market is no longer just about the people in suits.
It’s about all of us who are paying attention.

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