Kathmandu — As the government presents its first 100-day progress report as a story of reform, digital transformation and policy restructuring, Nepal’s capital market tells a different story. For investors, the same period has been marked more by falling wealth, declining confidence and uncertainty over the direction of policy.

The Ministry of Finance has claimed that the first 100 days laid the foundation for economic reform. It has pointed to legal amendments, digital service delivery, restructuring of public enterprises, progress in customs automation, revenue reforms and steps to strengthen financial-sector regulation. Finance Minister Dr. Swarnim Wagle has described the period as the beginning of a broader economic transformation.

But the stock market has not reflected that optimism. Based on the figures available before and after the government’s first 100 days, the total market capitalisation of the Nepal Stock Exchange declined from around Rs 50.93 kharba to Rs 45.59 kharba. This means listed companies lost around Rs 5.34 kharba in market value during the period.

The benchmark NEPSE index also weakened sharply. The index, which stood at 2,950.5 points a day before the formation of the new government, fell to 2,653.4 points by the end of the review period. This represents a decline of just over 10 percent. Nepali Paisa also recorded NEPSE at 2,653.40 on July 3, 2026.

The fall is significant not only because of the size of the loss, but also because it came at a time when investors had expected policy clarity from a government that entered office with a reformist image. Instead, the market has remained under pressure, with most sub-indices unable to recover sustainably.

A major concern for investors has been the leadership vacuum at the Securities Board of Nepal. Santosh Narayan Shrestha resigned as SEBON chairperson in April, saying he had submitted his resignation to the Ministry of Finance. After his resignation, the regulatory body remained without leadership for a period, delaying several decisions related to public issues, approvals and broader market supervision. Nepal News later reported that 47 candidates had applied for the vacant SEBON chairperson post.

The government, however, has included capital market reform among its 100-day achievements. The Ministry of Finance says the process of implementing the report on restructuring Nepal Stock Exchange has moved forward. It has also claimed that leadership selection in regulatory bodies related to banking, insurance and securities will be made through open competition.

Despite these claims, investors say the reforms have not yet reached the market in a visible form. Their argument is simple: announcements may create expectations, but only implementation restores confidence.

The government’s decision to raise capital gains tax has added to investor dissatisfaction. Through the Finance Bill, 2083, capital gains tax on shares sold after holding for more than one year has been raised to 7.5 percent, while shares sold within one year will now attract 10 percent tax. Earlier, these rates were 5 percent and 7.5 percent respectively. The government has clarified that this tax will be final.

For investors, the timing of the tax hike has sent a negative message. At a time when market confidence was already weak, they had expected policies that would encourage participation, increase institutional investment and widen the market base. Instead, many investors believe the tax increase has added another layer of uncertainty.

Investor representatives have described the government’s first 100 days as a mixed period. They acknowledge that the government has spoken about reform, regulatory improvement and restructuring. But they also argue that these commitments have not yet translated into stronger market demand, new investment products, institutional participation or a stable policy environment.

The Kathmandu Post reported that economists also viewed the first 100 days as a period in which reform initiatives had begun but implementation had lagged. The report noted that the stock market continued to weaken, private sector confidence remained low and banks still held large amounts of loanable funds.

The market’s reaction shows that investors are no longer satisfied by policy language alone. They are looking for actual decisions: a stable securities regulator, predictable tax rules, stronger institutional investors, easier participation for non-resident Nepalis and measures that increase demand in the secondary market.

The Finance Ministry’s 100-day report presents a long list of initiatives, including e-pension verification, online customs valuation, PAN services from local levels, legal reform, concessional loan agreements with development partners and restructuring plans for long-closed state-owned industries. These steps may support broader economic reform if implemented properly.

However, the capital market remains a sensitive indicator of expectations. Its decline during the government’s first 100 days suggests that investors have not yet been convinced that reform promises will quickly improve the investment climate.

The first 100 days, therefore, cannot be described as a complete failure, but they also cannot be called a success for the capital market. The period is better understood as a gap between reform commitments and market confidence. Whether that gap narrows will depend on how quickly the government moves from announcement to execution.

For now, the message from investors is clear: the market is waiting not for more promises, but for decisions that can restore trust.