Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU – Initial optimism in Nepal’s stock market failed to hold through the trading session on Sunday, with the NEPSE index retreating below the psychologically significant 2,700-point level by the close, signaling renewed volatility in the Nepal share market.
The benchmark Nepal Stock Exchange (NEPSE) index climbed steadily during the first 50 minutes of trading, reaching an intraday high of 2,788 points as early buying pressure drove market momentum. However, the rally lost strength in the latter half of the session, and the index reversed course to close at 2,698.44 points, marking a decline of 10.25 points for the day.
The sharp intraday swing highlights fragile investor sentiment and profit-booking behavior after early gains, a pattern increasingly visible in recent Nepal stock market trends. Analysts say such reversals indicate short-term speculative activity rather than sustained institutional buying.
Market breadth remained negative. Out of the traded stocks, investors in 85 companies posted gains, while shareholders of 168 companies suffered losses, reflecting broad-based selling pressure across multiple sectors. This imbalance suggests that the market correction was not limited to a few stocks but spread across the wider equity market in Nepal.
Among individual stocks, Kalinchok Darshan Company Limited recorded the steepest decline of the session, with its share price dropping 8.91 percent, making it the biggest loser of the day. The fall in this counter contributed to downward pressure in the broader market sentiment, especially among mid-cap and tourism-linked stocks.
Despite the index decline, trading activity remained robust. Total market turnover reached Rs 11.65 billion, indicating sustained liquidity and active participation from both retail and institutional investors. High turnover during a falling market often signals distribution, where investors sell into strength following early gains.
Super Madi Hydropower led the turnover chart, with shares worth Rs 560 million changing hands, making it the most actively traded stock of the day. Hydropower stocks continue to attract significant interest due to their long-term growth prospects and their strong presence in Nepal’s capital market structure.
Sunday’s session underscores the ongoing volatility in the Nepal capital market, where intraday enthusiasm can quickly reverse amid profit-taking and cautious investor outlook. The inability of the index to sustain levels above 2,700 points may reinforce technical resistance at higher levels, while traders closely monitor liquidity flow, sector rotation, and broader macroeconomic signals.
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