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Trends of Share Market in Nepal

Written by Roshan Bhattarai · 4 min read >

Everyone is into the share market these days. And why not? Share market comes with equal opportunities and risks. In this article, you will get to know everything you need to know about the Nepalese share market. For instance, types of companies in the share market, how to buy shares, trends of the share market in Nepal, and many more.

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While one can take the share market as a full-time income source or a side/part-time income source. However, to do share as a source of income one has to do a strong study and analysis of the market. Investors need to set a strong strategy to invest and trade in a share market.

For instance, we have heard names such as Warren Buffet, Benjamin Graham, John Neff, Peter Lynch, John Bogle, who have been world’s top richest people by investing in the shares.

Share market: Basic Introduction

First of all, let us know first what is share. Share is a part of a certain amount of capital i.e. divided into individuals or a certain number of people who contribute to it. Also, shares are issued by a company to collect capital for operation, expansion, or any other project of a company.

People or companies who hold shares of a company are called shareholders. Moreover, shareholders are paid annually a certain proportion of profit calculating the amount of share they hold is called a dividend. And, the market where shares are bought or sold is called the share market. Around the world, a share of a company can be bought or sold only if it is listed on the stock exchange e of a respective country.  

Click here to know the Basic Terminologies of Sharemarket

The trend of Nepalese Share Market

The share market in Nepal is now gradually improving. Comparatively, we can see many positive changes in the present share market. Back then, share trading was quite difficult and full of trouble. Standing in a long queue for filling IPOs, visiting broker offices for buying and selling shares, visiting banks for payment and receiving of money had made trader and investor in share market difficult and lack of interest to new investors and traders.

Online Trading in Share Market

While now, everything can be done online through the internet from mobile or computers in a few clicks. The paper-based share market has now fully converted into a dematerialized-based share market. As well as that, many new policies, rules, laws, and regulations are made for the share market.

These rules help to maintain uniformity, safety, and discipline in the share market. Some of these rules are Circuit breakers, T3 and T2 rules, digital payment systems, etc. Moreover, implementing rules in the share market make the share market a safe place to invest.

Youths interested in Share Market in Nepal

These days we can see the share market is attracting many youths and new investors to the share market. New investors have a question in their mind that “Is the share market a good opportunity to earn?” the answer is YES.

Definitely, the share market can be a good opportunity to earn. Nevertheless, it requires better knowledge, research, and study about the market. Likewise, deciding which shares to buy and where to invest requires good knowledge, research, and study about the market.

Analysis of the Share Market in Nepal before any Investment

First and foremost, before buying and investing in a share of a company, it is better to analyze the market on the following basis.

Fundamental Analysis of Share Market

It is done by analyzing the economy of the country, industrial analysis, situational analysis, and financial analysis of the company.

In addition, fundamental analysts need to know about the economic condition of the country because the economy affects the share market. As well as that, the situation of the industry or sector in which the company belongs needs to be analyzed properly before investing in a certain company. Along with that, the analysis of the political situation, market situation, demands, and supply situation of shares is also necessary.

Click here to Know Here How a Share Market works?

Technical Analysis of Share Market

Technical analysis means analyzing historical price charts and statistics for predicting future prices of the share.

In technical analysis, different indicators and tools are used to forecast price movements. Candlestick Patterns are now used in the share market to predict price movements. Indicators like Bollinger Band, Relative Strength Index, Moving Average Convergence Divergence, Volume Rate of Change, etc. are used to analyze the trend of the price movement

Online Platforms for Share Market in Nepal

Now, investors can easily check all the details and get updates about the share market from these given websites.

Nepal Stock Exchange (NEPSE)

Share Sansar

Mero Lagani

Nepali Paisa

Share Bazar Nepal

Securities Board of Nepal

Types of Companies listed in the Share Market in Nepal

In the context of Nepal, Public limited companies have opened their shares for the public and are listed on Nepal Stock Exchange (NEPSE). Public limited companies listed below are sub-index/ indices of the Nepal Stock Exchange (NEPSE).

  • Banking
  • Development Bank
  • Finance
  • Microfinance
  • Manufacturing and Processing
  • Hydropower
  • Non-Life Insurance
  • Life Insurance
  • Hotels
  • Mutual Fund
  • Trading, and others

For buying and selling shares of these listed companies from the share market, first you need to first enter a secondary market and a broker account.

Brokers are medium authorized and listed by Nepal Stock Exchange (NEPSE) and Securities Board Of Nepal (SEBON) that ease buying and selling of shares in the share market.

Find here the Step-Wise Guide to Register Business in Nepal

How to Buy and Sell Shares in the Nepalese Share Market

Buying and Selling Shares

We can buy shares by visiting the broker office and placing orders for shares with a collateral cheque.

Another way of buying shares is online through a Trading Management System account. For buying shares online, buy order should be placed first and collateral cheque should be deposited through Connect IPS (Interbank Payment System).

Selling of shares can be done by visiting the broker office or online through the Trading Management System account online by placing a sell order.

Which are the Best Insurance Companies in Nepal? Click here to know more.

Share Market in Nepal

On the End Note…

Above all, the share market can be a full time income or part-time income for us. However, it requires patience, control of emotions and sentiments, and fundamental and technical analysis knowledge about companies. 

As a matter of fact, with correct analysis, we can gain profit from the share market with comparatively less loss. Similarly, investing without proper knowledge, study and research can lead to maximum risk in the business.

In addition, investing in blue-chip stocks is very safe in terms of share risk. Blue-chip stocks maintain quality, reliability, reputation, profit, and benchmark of share market set at the national level. Some of the blue-chip stocks in Nepal are Nabil bank, Nepal Telecom, Nepal Life Insurance Company Limited, and Unilever Nepal Limited, etc.

Finally, this was all about the trend of share market in Nepal. Keep following JointRead for more information like this.