Top2 min readNEPSE Surges Above 2800, Strong Momentum Backed by Fundamentals and TechnicalsNEPSE Surges Above 2800, Strong Momentum Backed by Fundamentals and Technicals The Nepal Stock Exchange (NEPSE) continued its upward rally on Wednesday as listed companies began publishing their annual financial reports. With dividend expectations rising, investors have driven the market up for three straight sessions. On Wednesday alone, the NEPSE index surged by 53.01 points to close at 2819.10, crossing the 2800 level for the first time in 11 trading days.Dipesh Ghimire·27 Aug, 2025
Top2 min readGovernment Borrows at Cheaper Rates Amid Excess Liquidity in Banking SystemGovernment Borrows at Cheaper Rates Amid Excess Liquidity in Banking System The Government of Nepal is currently raising internal debt at one of the cheapest rates in recent years due to the presence of excess liquidity in the banking system. In fiscal year 2079/80 (2022/23), the interest rate on development bonds went as high as 11%. In sharp contrast, bonds issued at the start of the current fiscal year have carried rates as low as 3–4%, according to data from the Public Debt Management Office (PDMO). As of Bhadra 10 (August 26, 2025), the government has already raised NPR 50 billion through development bonds. These include five separate issuances worth NPR 10 billion each, with maturities of three years and eleven years. The average rate for these bonds stands at just 3.74%. Investor demand has been exceptionally strong, with some auctions oversubscribed up to seven times the issued amount.Dipesh Ghimire·27 Aug, 2025
Top2 min readNepal’s Public Finance: Rising Debt, Fluctuating Revenues, and Fiscal PressuresNepal’s Public Finance: Rising Debt, Fluctuating Revenues, and Fiscal Pressures Nepal’s fiscal indicators from 2020/21 to 2024/25 reveal a challenging picture of inconsistent revenue growth, uneven expenditure patterns, and a steady rise in both domestic and external debt. While revenue performance has improved in the latest fiscal year, the growing reliance on borrowing underscores persistent structural weaknesses in public finance.Dipesh Ghimire·24 Aug, 2025
Top3 min readNepal’s Financial Sector Shows Signs of Stability Amid Lower Interest Rates and Stronger DepositsNepal’s Financial Sector Shows Signs of Stability Amid Lower Interest Rates and Stronger Deposits Nepal’s financial sector indicators from 2020/21 to 2024/25 reflect a cycle of volatility followed by relative stabilization. While broad money growth has settled into moderate levels, interest rates have softened significantly, credit expansion has slowed, and stock market indicators suggest renewed investor confidence. The picture is one of easing financial pressures, but also of limited private sector lending growth that could weigh on long-term economic expansion.Dipesh Ghimire·24 Aug, 2025
Top3 min readNepal’s External Sector Gains Strength, But Trade Imbalance PersistsNepal’s External Sector Gains Strength, But Trade Imbalance Persists Nepal’s external sector performance over the past five fiscal years reflects both resilience and vulnerability. While remittances and foreign reserves have soared to record highs, and exports have staged a surprising rebound, the structural trade imbalance remains a pressing challenge. The data highlights a positive turnaround from past deficits, but also underlines risks tied to over-dependence on imports and migrant earnings.Dipesh Ghimire·24 Aug, 2025
Top2 min readInflation Pressures Ease, But Food Prices Turn NegativeInflation Pressures Ease, But Food Prices Turn Negative Nepal’s latest macroeconomic indicators reveal a mixed inflationary trend over the past five years, with consumer prices showing a significant cooling in recent years, even as non-food prices remain sticky and food prices unexpectedly slip into deflation in the current fiscal year. CPI Trend Shows Cooling Inflation The Consumer Price Index (CPI), which measures overall inflation, spiked to 8.08 percent in 2021/22—its highest in the period under review—amid global supply chain disruptions and rising import costs. It moderated to 7.44 percent in 2022/23, and has since eased substantially, falling to 2.20 percent in 2024/25, signaling improved price stability. The annual average CPI also follows a similar pattern, peaking at 7.74 percent in 2022/23, before settling at 4.06 percent in 2024/25. Economists interpret this decline as evidence of subdued demand, tighter monetary policy, and easing global commodity prices.Dipesh Ghimire·24 Aug, 2025
Top2 min readNepal’s Economy Shows Moderate Recovery Amid Slowing Capital FormationNepal’s Economy Shows Moderate Recovery Amid Slowing Capital Formation Nepal’s latest macroeconomic indicators highlight a fragile but improving economic outlook, with real GDP growth projected at 4.0 percent in FY 2024/25, up from 3.4 percent in the previous year. While growth momentum appears to be returning, structural challenges in investment and savings continue to pose risks to long-term stability.Dipesh Ghimire·24 Aug, 2025
Top2 min readNEPSE in Risk, Market Downturn Amid Regulatory Pressure and Technical BreakdownNEPSE in Risk, Market Downturn Amid Regulatory Pressure and Technical Breakdown The stock market fell again on Sunday, the first trading day of the week, extending its losing streak for the third consecutive session. Analysts attribute the decline to the recent government decision mandating National Identity Cards for stock market transactions, which has created fear of asset scrutiny and money laundering exposure. Many investors are believed to have sold their holdings due to this regulatory pressure. Non-Resident Nepalis (NRNs), who were active participants in Nepal’s secondary market, are also reportedly exiting due to difficulties in updating their identity documents. As a result, investor confidence has weakened further.Dipesh Ghimire·24 Aug, 2025
RIDI1 min readRidi Power Company Limited (RIDI) Q4 Results: Strong Turnaround to ProfitabilityRidi Power Company Limited (RIDI) ended FY 2024/25 Q4 with Rs. 355.75 million in revenue and Rs. 106.81 million net profit, reversing last year’s huge losses. EPS turned positive at Rs. 4.60, while both ROA and ROE showed strong recovery. With its market value up to Rs. 258.02 per share, RIDI has successfully regained investor trust. Sustaining profitability and margin stability will be key as the company seeks to build on this turnaround momentum.Sandeep Chaudhary·23 Aug, 2025
UMRH1 min readUnited IDI Mardi RB Hydropower Limited (UMRH) Q4 Results: Revenue Stable but Profit DeclinesUnited IDI Mardi RB Hydropower (UMRH) ended FY 2024/25 Q4 with Rs. 159.86 million in revenue and Rs. 26.27 million in profit, compared to Rs. 18.36 million last year. While revenue remained steady and gross margins stayed high at 89%, EPS dropped sharply to Rs. 5.70 and ROE fell, pointing to earnings pressure. With a high market value of Rs. 611.69 and strong dividend distribution (Rs. 4.21), UMRH continues to enjoy investor confidence, but sustaining profitability will be key.Sandeep Chaudhary·23 Aug, 2025