NEPSE Index Drop: Nepal Stock Market Falls 11.53 Points, Hydropower Trading High
11th May 2025, Kathmandu
Nepal’s stock market began the week with another decline. On Sunday, the NEPSE index dropped by 11.53 points and settled at 2,650.11. This marks a 0.47 percent fall compared to the previous session.
NEPSE Index Drop
Investors saw red across most sectors despite an active trading day. The trading volume remained high, showing investor interest, but price movements leaned mostly negative.
Trading Volume and Market Activity
More than 88,000 transactions were recorded throughout the session. Around 24 million shares changed hands, representing 300 listed securities. The total turnover stood at over NPR 10.2 billion, reflecting strong activity. However, this volume failed to lift the market sentiment as prices dropped for most listed companies.
Sector Performance: Mixed Results
Out of all traded companies, 164 saw their share prices decline. Only 82 companies managed to post gains. The rest remained unchanged. Five stocks hit the upper circuit limit with a 10 percent price rise.
These were Nepal Microinsurance, Crest Micro Life Insurance, Himalayan Hydropower, Joshi Hydropower, and Om Megashree Pharmaceuticals. Their shares saw a rush in buying, pushing prices to their daily limit. Nepal Microinsurance ended at NPR 2,457.60, while Crest Micro Life Insurance closed at NPR 2,031.70.
Biggest Losers: Sindhu Bikash Bank Takes a Hit
Despite gains in a few sectors, the overall mood remained subdued. Sindhu Bikash Bank experienced the sharpest drop among the losers. Its stock fell by 6.45 percent, closing at NPR 825.
Other companies like Guhyeshwari Merchant Bank, Synergy Power, and Hydroelectricity Investment and Development Company Limited also posted noticeable losses. Selling pressure was visible in many mid-sized firms, signaling growing investor caution.
Sector Gains: Hotel & Tourism Leading the Way
The sector-wise performance painted a mixed picture. The hotel and tourism sector rose the most, with a 6.5 percent gain. This increase suggests renewed optimism in hospitality as travel activity picks up. Development banks, life insurance, non-life insurance, and the trading sector also saw modest growth. Meanwhile, most other sector indices declined. The finance sector dropped the most, shedding 3.72 points.
Hydropower Stocks Dominate Trading Volume
Hydropower stocks dominated trading again. Radhi Hydropower led in turnover, generating over NPR 600 million in transactions. Ngadi Group Power followed closely, leading in both the number of trades and traded shares.
These companies drew strong attention from investors looking for growth opportunities in the energy sector. Despite the market downturn, hydropower continues to be a favorite among retail and institutional traders.
Investor Sentiment and Market Outlook
Throughout the day, investor sentiment appeared cautious. Many seemed to book profits from recent gains, leading to declines across several sectors. The consistent pressure on the index over the past week suggests that the market may be in a consolidation phase. Analysts believe macroeconomic concerns such as rising interest rates, inflation, and uncertainty around fiscal policies are affecting market confidence.
Strategic Shifts in Investor Behavior
In addition to these concerns, recent gains in certain stocks may have prompted short-term traders to sell and secure profits. The volatility across different sectors reflects a strategic shift in investor behavior. Some investors are moving toward sectors that show stronger recovery or stability. This includes insurance and energy stocks, which have recently outperformed.
Conclusion: A Cautious Outlook for Nepal’s Stock Market
Despite the index falling, the high transaction volume indicates that market participation remains strong. This signals that investors are still active but have become more selective. Many are choosing to invest in sectors with better prospects rather than spreading their capital across the board. This approach suggests a maturing market where traders focus on fundamentals and performance.
In conclusion, Nepal’s stock market closed Sunday with a notable decline in its index. However, trading activity stayed robust, crossing NPR 10 billion in turnover. Gains in the hotel, insurance, and hydropower sectors failed to offset losses in others.
With more companies seeing price drops than gains, the overall market direction remains downward. Investors will likely watch the coming days closely, looking for stability or signs of a rebound.
