NEPSE Market Cycles: A Historical Overview

The chart above tells the story of Nepal's economy through its stock market. By analyzing over two decades of data, we can see that NEPSE typically follows a cyclical pattern of approximately 4 to 5 years. This pattern consists of a sharp "Bull Market" (rising prices) followed by a longer "Bear Market" (correction/falling prices).

Major Market Peaks & Bull Runs

• The 2008 Bull Run (Peak: 1,175): This was the first major modern boom in NEPSE history. The index reached an all-time high of 1,175 in August 2008 before crashing down to ~292 over the next three years.
• The 2016 Bull Run (Peak: 1,881): After years of consolidation, the market rallied significantly, peaking at 1,881 in July 2016. This was driven by increased liquidity and capital increments in the banking sector.
• The "Great Bull" of 2021 (Peak: 3,198): The largest rally in history occurred post-COVID. Fueled by low interest rates and online trading adoption, NEPSE shattered records to hit 3,198.60 in August 2021.