The Nepal Stock Exchange (NEPSE index ) experienced a powerful upward swing on Wednesday, surging 34.01 points to close at 2,125.68. The day’s market turnover reached NPR 9.41 billion, marking a major confidence boost among investors after weeks of cautious trading.
Market analysts attributed the surge to growing optimism over upcoming IPOs, a revival in institutional participation, and strong earnings momentum across key sectors.
🔍Market Summary:
NEPSE Index Gain: +34.01 pointsClosing Index Level: 2,125.68Daily Turnover: NPR 9.41 billionLeading Sectors: Hydropower, Insurance, BankingTop Stocks: Upper Tamakoshi, NLIC, Nabil Bank, Api Power
⚡What’s Driving the Market?
1. IPO Pipeline Creates Buzz
With several companies preparing to launch IPOs in the hydropower and fintech sectors, the market is seeing a rush in retail investor activity, especially through MeroShare and Demat applications.
2. Sectoral Leadership Returns after NEPSE Index jumps
Hydropower stocks—long a favorite of Nepali retail investors—led the rebound. Insurance companies also saw renewed momentum amid speculation of upcoming bonus shares.
3. Strong Technical Support
After testing support around the 2,080 level, NEPSE bounced back, suggesting a possible trend reversal if volumes remain above NPR 8 billion.
Expert Comment: “The 34-point surge isn’t just a number—it’s a signal that the market is regaining its footing,” said Sujan Thapa, a senior equity advisor at Vision Securities.
🏦 Institutional Interest Re-emerges
Institutional players, including mutual funds and portfolio managers, were active in blue-chip banking and insurance counters. Stocks like Nabil Bank, Global IME, and Nepal Life Insurance saw large-volume trades, suggesting a strategic re-entry into the market.
⚠️Caution Ahead NEPSE Index
Despite the bullish momentum, experts warn of short-term corrections if:- Interest rates rise further- Global market instability spreads- New regulations tighten margin lending
Bina KC, investment trainer: “The enthusiasm is real, but so are the risks. Retail investors must avoid herd behavior and focus on fundamentals.”
✅ Investor Sentiment after latest NEPSE Index: Positive but Cautious
-Retail investors are hopeful but waiting for confirmation of sustained uptrend.
– Brokers report increased client activity but advise caution near resistance zones.
– Market outlook is bullish short-term, neutral in the medium term.
📌 Conclusion
The July 23 rally has lifted spirits in Nepal’s capital market, but whether NEPSE can hold this momentum will depend on sustained volume, healthy IPO demand, and macroeconomic stability. If these factors align, the index may eye a move beyond 2,150 in the coming days.
