Qualifier Nepal caused the first major upset of the ICC U19 Cricket World Cup 2016 when it stunned New Zealand by 32 runs in a Group D match in Fatullah on Thursday.

Nepal, which won the qualifying event in Malaysia last year to return to the World Cup after missing the previous tournament in 2014, bowled out the Kiwis for 206 after it was set a 239-run target.

While captain Raju Rijal top-scored for Nepal with 48, seamer Dipender Airee's three wickets and off-spinner Prem Tamang's two helped clinch the dramatic win.

Dale Phillips scored 41 to make a late victory bid for New Zealand before he was last out to spark joyous celebrations in the Nepalese camp.

“This was a great win for us,” said Rijal. “We fielded brilliantly to effect three run-outs and that turned the match for us.”

New Zealand skipper Josh Finnie said his side messed up what should have been a comfortable run-chase.

“We made the target more difficult for ourselves,” he said. “We must now win the next two games against India and Ireland if we are to progress.”