Nepal’s stock market surged by 270 points following the release of the Monetary Policy 2082/83. The Others Index led the rally with over 16% growth.
Nepal Rastra Bank Governor Dr. Bishwo Paudel announced the Monetary Policy for Fiscal Year 2082/83 on Ashar 27. Following the announcement, the Nepal Stock Exchange (NEPSE) index has increased by 270 points. Since the announcement was made on a Friday, which is a non-trading day in Nepal, no market movement occurred that day or the following Saturday. When the market reopened on Sunday (Ashar 29), it closed in the red, and the decline continued on Monday (Ashar 30). However, after those initial drops, the market entered a rising trend.
Among all sectoral indices, the Others Index recorded the highest growth post-policy. On Ashar 26, it closed at 2,368.59, and by Shrawan 13, it had reached 2,751.57, marking a rise of 382.98 points, equivalent to a 16.17% increase. The Development Bank Index followed with a 15.57% gain. Similarly, the Microfinance sector increased by 15.15%, the Manufacturing sector rose by 13.36%, and the Hydropower sector gained 10.53%. Over the same period, the overall NEPSE Index climbed by 9.89%.
Several sectors underperformed compared to NEPSE. The Banking sector saw a modest growth of only 7.10%, while Life Insurance increased by 7.13%, Hotel and Tourism by 7.19%, Non-Life Insurance by 7.31%, Investment by 7.35%, Trading by 7.69%, and the Finance sector by 9.06%.
The surge in the Others Index was mainly due to strong price movements in the two reinsurance companies. In the Development Bank sector, which had remained relatively stagnant for a long time, buying interest surged as investors saw renewed potential. The Microfinance sector benefited from indications that Nepal Rastra Bank may be flexible in allowing dividend distributions above 15%, making it more attractive. The Manufacturing sector, which had long been in consolidation, also started to perform well.
The Hydropower sector continues to build its reputation as a stable and reliable segment. With many companies showing strong balance sheets, investors believe that even if short-term profits aren’t realized, the upcoming first-quarter reports could offer a profitable exit opportunity. This has led to increased buying activity in the sector. Meanwhile, interest in the Finance sector is gradually picking up, but the Banking, Insurance, Hotel, Trading, and Investment sectors have yet to show strong appeal. Analysts note that unless there is clear resolution on the proposal to separate bankers from businesspersons, aggressive buying in the banking sector is unlikely in the near term.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
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