NEPSE Suffers 6% Crash; Investment Worth Rs. 2.68 Kharba Wiped Out in Minutes

The Nepal Stock Exchange (NEPSE) endured one of its most volatile sessions on Thursday, as the benchmark index plunged by 160.33 points (6.00%) to settle at 2,511.91, extending losses after a 35.99-point decline in the previous session.

Trading opened with heavy turbulence, lasting only three minutes before the index fell by 4%, triggering the first phase of NEPSE’s circuit breaker mechanism and a 20-minute suspension. Trading resumed at 11:23 AM, but the relief was short-lived. Within a minute, the benchmark fell 5%, activating a 40-minute halt. The final blow came after trading restarted at 12:04 PM, when the index slipped further to the 6% lower circuit within two minutes, forcing a full-day shutdown in line with NEPSE’s protocols.

For the day, NEPSE opened at 2,637.98 points, touched an intraday high of 2,637.97, and hit a low of 2,511.91 before closing at the same level. A total of 1,752,781 shares of 238 companies were traded through 7,435 transactions, generating a turnover of Rs. 72.87 crore. Market capitalization saw an erosion of nearly Rs. 2.68 kharba in just minutes, marking one of the steepest investor wealth wipeouts in recent history.

The financial turmoil unfolded against the backdrop of nationwide unrest. The “Gen Z protests” erupted with demonstrators railing against corruption, nepotism, and restrictions on social media. The violent wave of protests ultimately forced the resignation of Prime Minister KP Sharma Oli, leaving key state institutions damaged and uncertainty looming over the political and economic landscape.

The triple application of circuit breakers and the scale of investor losses underscore the fragile sentiment prevailing in Nepal’s capital markets, with political instability now amplifying financial volatility.

Himalayan Distillery Limited (HDL) topped the turnover chart, amounting to Rs. 4.08 Crores. The stock closed at Rs. 1,298.

Him Star Urja Company Limited (HIMSTAR) led the gainer's list with a 9.99% gain.

Meanwhile, eleven companies recorded the steepest drop, falling 10.00% each.

Among sectors, the Trading Index registered the highest loss, losing 9.34%, while the Mutual Fund saw the least loss at 0.31%.