Market Update: NEPSE Falls by 4.98 Points to 2,561; Trading Volume Declines, but Technical Indicators Still Show Market Stability

Kathmandu — After two consecutive days of upward movement, the NEPSE index slipped again on Wednesday. Investors who had witnessed a mild rise on Tuesday saw renewed pressure in the market, with the NEPSE index falling by 4.98 points to close at 2,561.08 points. Market analysts attribute this decline to cautious investor sentiment, weak buying pressure, and overall uncertainty in the broader economy.

Trading Volume Declines to Rs. 3.77 Billion

Along with the decline in the index, the total trading turnover also dropped notably.
On Tuesday, the market had recorded a turnover of Rs. 4.10 billion, but on Wednesday the figure fell to Rs. 3.77 billion.

According to the Nepal Stock Exchange, 83.88 lakh shares of 338 companies were traded through 50,626 transactions. Analysts say the decline in turnover reflects rising caution among investors.

Eight Companies Hit Positive Circuit Level

Despite the overall market weakness, several stocks performed exceptionally well.
A total of eight companies hit the positive circuit limit on Wednesday:

• Mabilung Energy

• Darma Khola Hydro Energy

• Sagar Distillery

• Himstar Energy

• Bungad Hydropower

• Sanvi Energy

• Bandipur Cable Car & Tourism

• Jhapa Energy

Similarly, Swastik Laghubitta gained more than 8%, indicating continued investor interest in select microfinance and energy stocks.

Meanwhile, Corporate Development Bank was the top loser of the day, dropping 6.03%.

Barun Hydropower Tops Turnover Chart

Barun Hydropower remained the most actively traded stock of the day with an impressive Rs. 274 million in turnover.
Other major turnovers included:

• Sahas Urja: Over Rs. 190 million

• Radhi Hydropower: Nearly Rs. 160 million

The hydropower and energy sector continues to dominate the market, reflecting growing investor interest in the sector.

Sector Summary: 9 Indices Fall, 4 Indices Rise

Out of the 13 sectoral indices—

• 9 declined

• 4 closed in the green

The Hotels & Tourism index led the gainers, rising 1.16%, while the Development Bank index was the weakest performer, dropping 1.09%.

According to market experts, “ample liquidity but weak credit expansion, a slow economy, and uncertain investor sentiment have prevented NEPSE from seeing a stronger upward breakout.”

Technical Analysis: Market Decline but Signs of Strength

Technical analysts claim that despite the decline, the market is still showing positive technical signals.

One analyst noted:
“Had the index closed above 2,580 today, the support structure would have been stronger. If Thursday’s market closes above 2,580, a positive sentiment could return.”

Key technical levels:

• Next Resistance: 2,630

• Primary Support: 2,530

Technically, analysts view life insurance, manufacturing & processing, and hydropower as attractive sectors at the moment.

Broker Analysis: Heavy Selling from Major Houses — Broker 58 Sells 460,000 Shares of Barun Hydro

Market activity among major broker houses was also notable.
Among the 10 largest brokers:

• 6 brokers recorded more BUY than SELL

• 4 brokers recorded more SELL than BUY

Brokers with Higher SELL Activity:

• Broker 58

• Broker 48

• Broker 57

• Broker 35

Brokers with Higher BUY Activity:

• Broker 34

• Broker 42

• Broker 45

• Broker 49

• Broker 38

• Broker 14

Major Transactions

• Barun Hydropower:
  → 460,000 shares sold from Broker 58 alone

• Api Power:
  → 44,000 shares sold from Broker 59

• NIFRA:
  → 47,000 shares bought through Broker 28

• PCBL:
  → 41,000 shares bought through Broker 8

Broker-level data shows strong selling pressure in hydropower and banking stocks, while buying interest was seen in infrastructure and financial companies.