This week’s NEPSE performance shows a market driven by sectoral surges and high-volume trading, despite a modest gain in the benchmark index.

The index rose by 2 percent, with strong growth in the Manufacturing, Hotel and Hydropower sectors. Reliance Spinning Mills Limited recorded the highest turnover, while hydropower stocks dominated trading activity.

Market Highlights

The benchmark index closed the week at 2,837.78, gaining 55.60 points. This represents a steady 2 percent rise compared to the previous week's close of 2,782.18. The sensitive index rose 1.04 percent, indicating that blue-chip companies are seeing moderate investor interest.

Market activity remains robust, with daily turnover hitting the Rs 8–9 billion range, suggesting strong liquidity in the system. Capitalisation rose to Rs 4.82 trillion from Rs 4.73 trillion compared to the previous week, adding Rs 94 billion in investor wealth.

Manufacturing and Processing led the market with a remarkable 8.40 percent gain, adding 902.15 points. Hotel and Tourism, and Hydropower followed with 5.80 percent and 5.14 percent gains, respectively.

Top gainers

New listings and hydropower stocks dominated gains, with several hitting upper circuit limits multiple times.

Stock market analyst Ajaya Singh Thapa said multiple high-performing scripts point to a speculative environment, particularly among newly listed or low-cap hydropower stocks.

Market activity

Liquidity remained concentrated in energy and manufacturing stocks. Reliance Spinning Mills posted the highest turnover at Rs 2.57 billion, followed by National Hydro Power Company at Rs 2.11 billion.

National Hydro Power also led in trading volume, with 7.41 million shares exchanged. Himalayan Reinsurance Limited saw high turnover despite a 3.45 percent price decline.

However, some indices faced pressure. The Sensitive Float Index dropped by 15.10 percent, while the Trading sector fell by 2.96 percent. Narayani Development Bank was the biggest loser, declining by 8.78 percent.

Hydropower stocks continued to dominate, accounting for eight of the top 10 most active shares. According to Thapa, the surge in manufacturing, hotels, and Hydropower has largely been driven by newly listed companies such as Reliance Spinning Mills.

Technical outlook

Strong support is seen in the 2,680-2,700 range, while resistance lies between 2,960 and 2,970.

The Relative Strength Index (RSI) remains around 54, indicating neutral-to-bullish momentum. Analyst Thapa say it needs to stay above 60 for stronger upside.

The Moving Average Convergence Divergence (MACD) indicator is close to a bullish crossover, signalling a potential shift towards upward momentum.