Nepalese Stock Market Hits Historic Low Under New Finance Minister, Wiping Out Rs. 4.71 Trillion
Three months into the new administration under Finance Minister Dr. Swarnim Wagle, the Nepal Stock Exchange (NEPSE) has plummeted by over 300 points. This massive decline, fueled by a disappointing federal budget and regulatory fears, signals deep investor distrust in the current economic leadership.
According to global financial principles, a stock market functions not just as a hub for immediate profit and loss, but as a reliable future predictor of an economy's health. It forecasts policy stability, liquidity, and investment friendliness. While a positive economic outlook triggers a bullish trend, structural stagnation and restrictive policies prompt the market to decline, effectively rejecting government initiatives ahead of time. It has been three months since the formation of the new government led by Balendra Shah (Balen), with renowned economist Dr. Swarnim Wagle steering the Ministry of Finance. Despite lofty rhetoric regarding economic reform, national expenditure and revenue collection remain stagnant. The capital market has delivered a bleak assessment of Wagle's tenure. Since his appointment, NEPSE has undergone a historic correction, shedding 300.65 points. On March 26 (Chaitra 12), the index stood at a high of 2950.16 points as investors held onto initial optimism. Today, that index has collapsed to 2649.59 points. This downturn extends beyond index numbers to overall market wealth. Total market capitalization has shrunk from Rs. 50.09 trillion at the time of the government's formation to Rs. 45.38 trillion—wiping away roughly Rs. 4.71 trillion in investor wealth.