NEPSE surges 64 points as turnover crosses Rs 21 billion in broad-based rally

KATHMANDU: Nepal’s stock market witnessed a strong rebound on Thursday, with the benchmark NEPSE Index gaining 64.69 points to close at 2,877, driven by across-the-board buying and a sharp rise in trading volume.

The market maintained a steady upward trajectory from the opening bell, reflecting renewed investor confidence and improved sentiment following recent volatility.

Turnover Jumps Above NPR 21 Billion

In parallel with the index surge, trading activity strengthened significantly. Total daily turnover climbed to NPR 21.22 billion, up from NPR 12.03 billion recorded in the previous session.

Although the figure remains slightly below the recent high of NPR 21.50 billion recorded on Falgun 26, it signals a strong revival in market participation. The all-time record turnover of NPR 29.95 billion, achieved on Shrawan 31, 2081, still stands as the benchmark.

Market Breadth Strongly Positive

Market breadth remained overwhelmingly positive, with share prices of 240 companies advancing, while only 22 declined and 2 remained unchanged—indicating a broad-based rally rather than selective gains.

All sectoral indices closed in positive territory, further reinforcing the strength of the rally.

Development Banks Lead Sectoral Gains

The development bank sector emerged as the top performer, surging by 3.95 percent. Other major sectors also posted notable gains:

Banking: up 3.16 percent

Hydropower: up 2.29 percent

Life Insurance: up 2.76 percent

Finance: up 1.94 percent

Hotels and Tourism: up 1.75 percent

Manufacturing & Processing: up 1.89 percent

Non-life Insurance: up 1.80 percent

Investment: up 1.77 percent

Microfinance: up 1.24 percent

Trading: up 0.16 percent

The uniform rise across sectors suggests a market-wide accumulation phase rather than sector-specific speculation.

Multiple Stocks Hit Upper Circuit

Five companies hit the 10 percent upper circuit limit, including Corporate Development Bank, Salpa Development Bank, Reliance Spinning Mills, Solu Hydropower, and Hotel Forest Inn.

Among other notable gainers, Sanjen Hydropower rose by 8 percent, Upper Tamakoshi by 7.53 percent, NIC Asia Bank by 6.09 percent, Citizens Bank International by 5.83 percent, and Machhapuchchhre Bank by 5.58 percent.

Limited Losers, Selective Profit Booking

On the downside, Mahuli Laghubitta recorded the highest decline of 2.97 percent, indicating limited profit booking amid the broader rally.

High Trading Concentration in Key Stocks

Stocks with the highest turnover included Ngadi Group, National Hydropower, Ridi Power, Ankhu Khola Hydropower, and Upper Tamakoshi—suggesting continued investor focus on hydropower and energy-related companies.

Market Outlook

The sharp rise in both index and turnover indicates a potential shift in short-term momentum, supported by improved liquidity and positive sentiment. However, analysts caution that sustainability of the rally will depend on macroeconomic stability, interest rate trends, and regulatory developments.

For now, the market’s strong performance signals renewed optimism among investors, with momentum building after a period of correction and consolidation.