Is NEPSE Still a Banking Market? A Two-Decade Analysis Says Otherwise
Summary
The Nepal Stock Exchange (NEPSE) has evolved over two decades from a bank-dominated market to a more diversified ecosystem, with sectors like hydropower and microfinance gaining significant market capitalization.
Key Points
- NEPSE's total market capitalization surged from NPR 130.17 billion in 2006 to NPR 4,744.73 billion by 2026.
- Commercial banks' market share decreased from 66.52% in 2007 to 24.20% in 2026, showing a decline in dominance.
- Hydropower and microfinance sectors emerged as significant contributors, with hydropower growing fastest to NPR 755.35 billion in 2026.
- Other sectors such as insurance, manufacturing, hotel and tourism, trading, and investment also saw steady growth and diversification.
