NEPSE Plummets 36 Points Amid Shaking Investor Confidence: Turnover Hits Rs 6.35 Billion
23rd September 2026, Kathmandu
Nepal’s secondary market experienced a notable downturn, with the Nepal Stock Exchange (NEPSE) index dropping significantly by 36.25 points to close at 2,618.03 points.
This sharp correction has wiped out billions from market capitalization, injecting renewed volatility into the trading floor and leaving investors anxious.
Market Performance Snapshot
Total Turnover: Rs 6,356.6 million (Rs 6.35 billion)
Total Volume: Over 2.16 million shares traded across 352 companies
Gainers: Only 23 companies
Losers: 253 companies
Unchanged: Remaining listed companies
Selling pressure was absolute across the board, with all 13 sub-indices turning completely red. Heavyweights such as Commercial Banks, Hydropower, and Life Insurance companies suffered the most distinct and aggressive price corrections.
Why is the Market Falling Despite Policy Support?
The recent market behavior has baffled many, especially given the backdrop of several supportive measures introduced by regulatory bodies and the government:
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Macroeconomic Expectations: Hopes were high that the Ministry of Finance’s relief packages, reduced capital gains tax policies, and the relative flexibility shown by Nepal Rastra Bank (NRB) and the Securities Board of Nepal (SEBON) would trigger a bull run.
Dividend Season Paradox: The market has officially entered its peak dividend-distribution season—a time historically characterized by massive buyer enthusiasm and upward momentum. Yet, positive sentiment remains muted.
The Real Culprit: Fear and Compliance Scrutiny
According to market analysts, the primary driver behind the sluggish momentum is investor hesitation rooted in regulatory anxiety.
Source of Funds Scrutiny: Heightened investigations and compliance checks regarding anti-money laundering (AML) targeting major high-net-worth investors have created a climate of fear.
Lack of Liquidity/Demand: With big-ticket institutional and high-net-worth investors stepping back to avoid scrutiny, structural market demand has dried up.
Retail Sentiment: Meanwhile, retail and mid-level investors have adopted a strict “wait-and-watch” approach, keeping transaction volumes restricted.
Opportunities vs. Risks: What Lies Ahead?
Market opinions are deeply polarized following this sharp market correction:
The Bullish View: Seasoned value investors see this steep discount as an ideal entry point to accumulate fundamentally strong shares at attractive valuations during a market dip.
The Bearish View: Cautious market participants view this persistent downturn as a warning bell of deep psychological distress and lingering structural volatility within the financial ecosystem.
