Nepal stock market sees decline following Tihar holiday break

The Nepal Stock Exchange (NEPSE) experienced a downturn as trading resumed on Friday, November 13, 2026, following a multi-day closure for the Tihar festival. According to Annapurna Post, the benchmark index fell by 6.44 points, closing at 2,648.77. Trading volume was relatively subdued, with transactions totaling approximately Rs 3.05 billion.

While market participants had hoped for a post-holiday rally, the session saw a decline in the majority of sectors. Annapurna Post reported that of the 335 scrips traded, 160 saw a decrease in value, while 110 recorded gains. Despite the overall market dip, certain sectors including development, hotels and tourism, hydropower, and non-life insurance managed to post gains in their respective sub-indices.

Market outlook and investment indicators

Analysts are currently debating the future trajectory of the market. Setopati notes that while macroeconomic indicators—such as high liquidity in banks, lower interest rates, and rising remittance inflows—are theoretically positive for equities, the market has struggled to maintain momentum. The International Monetary Fund (IMF) has highlighted that weak private sector credit expansion, driven by sluggish domestic demand, remains a significant hurdle for the economy, according to Setopati.

For investors navigating this period, experts emphasize the importance of fundamental analysis over market sentiment. Artha Sansar suggests that investors should look beyond short-term price fluctuations and focus on six key financial indicators: Earnings Per Share (EPS), the Price-to-Earnings (P/E) ratio, dividend history, book value, Return on Equity (ROE), and debt-to-equity ratios. Artha Sansar cautions that high EPS or low P/E ratios alone do not guarantee a sound investment, as these must be evaluated against industry peers and the company's long-term business stability.

Setopati further warns that while low interest rates may encourage investors to shift capital from bank deposits to the stock market, any sustainable growth must be backed by genuine improvements in corporate earnings. Investors are advised to scrutinize whether a company’s profit growth stems from core business operations or one-time gains, such as asset sales, which may not be sustainable in the long run.

As the market moves forward, observers suggest that the nature of trading—specifically whether the buying pressure is broad-based or concentrated in a few stocks—will be a critical indicator of market health. Investors are encouraged to conduct their own due diligence, assessing both sector-specific risks and the overall quality of financial disclosures, rather than relying on market rumors.