NEPSE Green for Second Consecutive Day, Microfinance and Production Sectors Lead While Turnover Declines

The NEPSE index continued its upward trend for the second consecutive day on Monday, rising by 9.19 points to close at 2,631.48. This follows Sunday’s significant 26.53-point gain, signaling a continuation of the market’s positive momentum. However, despite the index gain, a decline in total daily turnover to NPR 6.38 billion—down from over NPR 7 billion on Sunday—indicates investor caution persists.

Out of 251 companies traded on Monday, share prices of 145 increased, 103 declined, and the rest remained unchanged. Sector-wise, 9 out of 13 sub-indices posted gains. The Manufacturing & Processing sub-index led the rally with a 1.63% increase, followed closely by the Microfinance sub-index, which climbed nearly 1%, showing rising investor interest in that segment.

Among the top gainers, Rapti Hydro & General Construction hit the positive circuit limit, while Dhaulagiri Laghubitta Bittiya Sanstha and Win Nepal Laghubitta rose by 9.48% and 9.3% respectively—indicating growing enthusiasm for microfinance stocks. On the losing end, Panchakanya Mai Hydropower fell the most, dropping 4.92%.

In terms of turnover, Sahas Urja Ltd led with trades worth NPR 365.3 million, followed by Sanima Mai Hydropower and Butwal Power Company with NPR 310 million and NPR 300 million respectively.

Technical Analysis
Following a bullish candlestick on Sunday, Monday’s "spinning top" pattern reflects market indecision but also hints at a potential bullish descending triangle setup. The index tested both the resistance trendline near 2650 and the middle line of a possible double-bottom pattern but closed below both—indicating the market is still struggling to break out decisively.

Despite the consistent rise in the index, low trading volume shows a lack of strong conviction. The declining dominance of the hydropower sector in total turnover may signal the end of a recent rotation in that space. On the upside, the banking sector’s stable performance remains a key support for sustaining bullish sentiment.

Broker Activity Analysis
Broker No. 58 led buying activity with purchases worth NPR 3.55 billion. Brokers 44 and 62 also showed notable net holdings. Broker 44 recorded a buy/sell ratio of 1.478 with net holdings of NPR 79.2 million. Meanwhile, brokers 42, 34, and 56 were more active on the selling side, with Broker 56 posting a negative holding of NPR 59.9 million, indicating short-term selling pressure.

Detailed stats show that Broker 6 executed nearly equal buy and sell volumes (over 3.4 lakh and 3.5 lakh units respectively), suggesting potential internal matching. Broker 45 purchased 2.08 lakh units of KBL shares and sold 2.18 lakh, while Broker 44 offloaded 61,000 units of HDL.

Despite continued index growth, falling turnover and resistance at key technical levels signal market indecision. Until the index decisively breaks and closes above 2650, the rally remains uncertain. Investors are advised to monitor this resistance level closely over upcoming sessions and proceed with caution.