Kathmandu. The market is very ruthless. It decides its direction on the basis of profit and loss, fear and greed, not emotions.

Nepal’s stock market (NEPSE), which reached its highest point in 2021, is still struggling to reach the same level . It took a long time for the market, which was severely affected by the COVID-19 pandemic. In August 2024, the market tried to hit the same high again, but it fell behind by about 5 percent. Then, in July 2025, there was a signal to rise again. However, the market began to fall again due to the Gen-G movement that began in the first week of September, which was only natural given the volatile political situation. The market never likes volatility.

However, in the last four months of the Sushila Karki-led interim government, the market has been steadily recovering from a low point.Then the election was held and a new government was formed.

However, since the formation of the new government, the market has fallen by about 10 percent.However, after the formation of such a strong government, the market was expected to rise by at least 10 percent, increasing investor confidence. This can be blamed on the US-Iran war. But in the last six months, the U. S. stock market has risen more than 20 percent, while most Asian stocks have rallied more than 10 percent.

In such a situation, there must be something wrong with the market not showing faith in the government that has come up with the slogan of good governance. Nepali investors can understand that better than anyone else.

Some may argue that the economy and the financial market are not the same. Of course, the two are not the same. However, the financial market plays an important predictor of where the economy is headed. In most cases, the economy and the stock market move in parallel. However, the current NEPSE does not seem to have given a positive signal towards the economy.

Governments around the world are implementing various policies, tax breaks, and incentive programs to stimulate financial markets and real estate transactions.The reason for this is obvious : in the modern economy, citizens do not hide their savings under their beds, but invest in the market. That investment is directly linked to their pensions, old age income sources, and future financial security. Therefore, governments are doing everything they can to prevent the financial market from falling continuously.

Let’s hope that the present government will also take effective initiatives to uplift NEPSE and the overall business environment.It will adopt a policy to encourage investors to invest, to provide an environment of trust and ease to the businessmen, not fear and fear. Only through this will economic activities expand, investment will increase and the economy can take long-term momentum.