Kathmandu | The Nepal Stock Exchange (NEPSE) index recorded a modest gain of 7.01 points (0.26%), closing at 2,696.23. This follows a significant rise of 27.14 points in the previous session.  This builds on yesterday’s bullish momentum, but today's session also brought clear signs of caution as turnover dropped notably, and sectoral movement revealed an increasingly fragmented market sentiment.

Market Highlights:

Positive Close with Risk Undertones

NEPSE opened today at 2,702.46, reaching as high as 2,704.97, and dipping as low as 2,685.36, before closing at 2,696.23. A total of 329 scrips were traded, among which 147 advanced, 97 declined, and two remained unchanged. While the market did post a gain, total turnover shrank to NPR 7.26 billion   a significant drop from NPR 8.40 billion in the previous session. This pullback in liquidity introduces a note of risk to what appears, on the surface, to be a stable market. Market Capitalization now stands at NPR 4.48 trillion, while float market capitalization is at NPR 1.49 trillion.

Sector Snapshot: Uncertainty Returns

Sectoral performance was mixed today  reinforcing the market’s lack of clear direction:

• Hydropower Index surged by 1.63%, leading the sectoral gainers.

• Development Bank Index followed with a 1.11% gain  a continuation of yesterday's strong showing.

• Others Index suffered the most, falling by 1.07%, followed by the Finance Index, which declined 0.67%.

• Interestingly, the Investment Sector, which had jumped 2.71% yesterday, dropped by 0.35% today  a sharp turnaround that adds to the ongoing volatility and market uncertainty.

Top Gainers: Hydropower, Microinsurance, and Development Banks Dominate Again

Echoing yesterday’s trend, Corporate Development Bank (CORBL) hit the upper circuit for the second day in a row. It was joined  by Balephi Hydropower (BHL), which rebounded strongly despite yesterday’s record-breaking but downward turnover. Also making the gainers’ list were:

• Nepal Micro Insurance Company (NMIC): +9.99%

• Crest Micro Life Insurance (CREST): +9.99%

• Radhi Hydropower (RADHI): +9.97%

The top ten gainers were largely composed of companies in the development bank, microinsurance, and hydropower sectors, indicating sustained investor interest in these areas.

Top Losers: Gurans Laghubitta Takes a Hit

On the downside, Gurans Laghubitta Bittiya Sanstha Ltd. led the losers with a drop of 5.55%, followed by Sindu Bikas Bank, which fell by 4.39%. The latter is particularly surprising given that the development bank sector overall gained today, suggesting stock-specific issues may be at play. Other scrips experienced more modest losses.

Turnover Leaders: NGPL at the Top

• Ngadi Group Power Ltd. (NGPL) led in turnover with Rs. 594.15 million,

• followed by Radhi Hydropower (RADHI) at Rs. 507.21 million,

• and Balephi Hydropower (BHL).

These figures highlight continued enthusiasm for hydropower plays among active traders.

Conclusion: Uncertainty Creeps In Despite Green Close

While NEPSE continued its upward journey today, the declining turnover, mixed sector performance, and quick reversals in specific sectors paint a picture of uncertainty. Yesterday’s bullishness seems to have morphed into cautious rotation with only a few sectors carrying the market upward. Until broader clarity emerges possibly from upcoming earnings or policy cues  investor sentiment is likely to remain watchful, with selective optimism favoring hydropower, microinsurance, and high-dividend financial plays.