NEPSE rebounds after midweek drop, NEA signs 750 MW solar PPA, finance ministry tightens project rules

Mutual funds such as NIBL Growth Fund (NIBLGF) and HLI Large Cap Fund (HLICF), while Crest Micro Life Insurance (CREST) from the life insurance sector appeared as both gainers and losers. 

On the losing side, Pure Energy (PURE) and People Power (PPL) hydropowers were listed. Other stocks such as CORBL, SSHL, DHEL, GLBSL, KEF, MMF1, MKHC, and KPCL also underperformed.

Market watch: News, policies, and listing

NRs 48.44 billion worth of securities listed on NEPSE in first half of 2025/26

NEPSE had 284 listed companies in mid-January 2026, up from 267 a year earlier, summarises NRB’s recent half-yearly macroeconomic update. The largest group remains Banks, Financial Institutions (BFIs), and insurance companies, with 132 listings, followed by 97 hydropower companies, 26 manufacturing and processing industries, 8 hotels, 7 investment companies, 4 trading companies, and 10 others.

In terms of market capitalisation, BFIs and insurance companies dominate with a 52.3% share, while hydropower accounts for 15.2%, investment companies 7.3%, manufacturing 6.9%, trading 4.8%, hotels 3.1%, and other companies 10.4%.

The paid-up value of 9.22 billion shares listed on NEPSE reached NRs 908.50 billion. During the first half of FY 2025/26, securities worth NRs. 48.44 billion were listed, including ordinary shares (NRs 21.96 billion), right shares (NRs 9.64 billion), mutual funds (NRs 6.25 billion), bonus shares (NRs 6.25 billion), debentures (NRs 3.40 billion), and FPOs (NRs 0.93 billion).

Meanwhile, the Securities Board of Nepal approved public issuances totaling NRs. 21.15 billion, primarily mutual funds (NRs 11.83 billion), ordinary shares (NRs 5.55 billion), and right shares (NRs 3.78 billion).

The NEPSE index stood at 2,641.44 in mid-January 2025, an increase from 2,594.13 in mid-January 2025. Share market capitalisation rose to NRs 4,435.03 billion, with the market cap-to-GDP ratio increasing to 72.62%.

[Find other macroeconomic updates here: Strong first half for economy amid easing inflation, record remittances and forex reserves]

NEA signs PPAs for 750 MW solar energy

According to multiple reports this week, the Nepal Electricity Authority (NEA) has signed Power Purchase Agreements (PPAs) for 750 megawatts of solar power.

The deals are part of the 960 MW solar tender launched about 18 months ago to fulfill its dry season power deficit, in which 63 companies were selected. NEA completed its auction in November 2024, awarding contracts for 960 MW of grid-connected solar projects, exceeding the original tendered capacity of 800 MW. Of the total, 750 MW has now secured agreements, while the remaining projects are still in process.

Under the PPAs, plants with a capacity of up to 10 MW are now required to start generating electricity within 18 months, and larger projects within two years. Projects must complete land acquisition, obtain environmental clearances, and secure financing before commencing construction.

World Bank approves $95 million loan to expand SME finance

The World Bank approved a $95 million loan this week to expand access to finance for Nepal’s small and medium-sized enterprises. The funding is intended to assist 100,000 businesses that have limited access to loans owing to insufficient collateral and weak credit records. 

“This operation will strengthen Nepal’s Deposit and Credit Guarantee Fund (DCGF) to expand risk-sharing, enhance financial sustainability, and introduce new guarantee products for underserved segments such as women-led businesses,” said David Sislen, World Bank Country Division Director for Maldives, Nepal, and Sri Lanka.

According to the World Bank, the plan will also upgrade the technology and institutional capacity of Nepal's Credit Information Bureau (CIB), helping it expand its data coverage, utilise alternative data sources, and enhance data security to enable banks to access credit risk more accurately.

Bhatbhateni’s Koteshwor outlet set to resume operations

Bhatbhateni Super Store in Koteshwor will reopen on February 10 after months of repairs following vandalism and arson during the September protests, marking a significant step in the recovery of the country’s largest retail chain.

Another outlet at the Maharajgunj store is expected to reopen within two weeks, while other damaged outlets are being restored in phases. The company had already resumed operations at its Baluwatar warehouse three months after the protests.

On September 9, mobs damaged 21 of Bhatbhateni’s 28 stores nationwide, resulting in losses of NRs 10.85 billion. Twelve stores were destroyed, and nine were partially damaged.  Company estimates show infrastructure losses of NRs 4.40 billion, with arson destroying goods worth NRs 5.96 billion, while looting and vandalism caused an additional NRs 495.7 million in losses.

Tourist arrivals in January increased by 15.7%

Nepal’s tourism sector kicked off 2026 on a positive note, with a notable rise in international visitor arrivals in January. 

A total of 92,573 foreign tourists visited the country during the month, marking a 15.7% increase compared to January 2025. Encouragingly, arrivals were also 14% higher than pre-pandemic January 2019 levels.

India remained the largest source market, contributing 26,624 visitors (28.8%). This was followed by China (9,101 visitors; 9.8%) and the United States (8,406 visitors; 9.1%). Other key markets included Bangladesh (5,814 visitors; 6.3%) and Australia (4,957 visitors; 5.4%).

From a regional perspective, South Asian (SAARC) countries accounted for 39.3% of total arrivals. Visitors from other Asian nations made up 26.1%, while Europe contributed 12.3%, the Americas 10.8%, and Oceania 5.7%. Smaller shares came from the Middle East (1%) and Africa (0.4%), with other regions accounting for 4.5%.

In 2025, Nepal welcomed a total of 1.16 million tourists in the country, which was a modest increase of 0.95% compared to 2024 and three percent short of the pre-pandemic level.

MoF tightens multi-year project rules: sets NRs 500 million minimum cost and 25% upfront funding

The Ministry of Finance (MoF) has tightened approval rules for multi-year government projects, raising the cost threshold and larger upfront budget requirement to curb stalled and underfunded projects.

Under ‘"Criteria for Source Agreement of Multi-Year Projects, 2082"’, most infrastructure projects must exceed budget value of NRs 500 million to qualify for multi-year sourcing, while government buildings and service procurement projects must be over NRs 200 million. Line ministries must allocate at least 25% of the total project cost in the first year.

Projects will also need detailed designs, land clearance, environmental approval, and registration in the National Project Bank before submission. The proposal must reach the National Planning Commission by the end of Kartik, with final approval from the MoF by mid-Poush.

Source agreement will remain valid for three years and will lapse if procurement doesn't begin within the same fiscal year.

Bridges, disaster response, and foreign-aid-funded projects are exempt from the threshold.