🎓 Share market basics · Lesson 10/10
NEPSE’s sectors and what moves each
From banks to hydro — how each sector earns and what moves its price. · ⏱ 2 min
Companies don’t all earn the same way. Banks earn from interest, hydro from selling electricity, insurers from premiums. So each sector is read differently.
- Banks, development banks, finance companies: take deposits, lend, earn the interest gap (spread). Watch interest rates, liquidity and bad loans (NPL).
- Microfinance: small loans, mostly to women’s groups. Repayment and regulation matter most.
- Hydropower: generates power and sells it to NEA on long contracts. Water flow (wet/dry season), floods and project delays matter — our hydro news tracks these.
- Life and non-life insurance: collect premiums, invest them, pay claims. Watch premium growth and the claim ratio.
- Manufacturing, hotels, trading: earn from goods or visitors — driven by demand, costs and seasons.
- Investment companies and mutual funds: hold other companies. For a mutual fund read the NAV, not only the price.