NEPSE index fell 2.38% throughout the week, but what’s driving the drop? Explore key trends from the NEPSE chart, top movers, and what it all means for investors.

The NEPSE index took a noticeable hit this week, dropping by 64.71 points to close at 2,658.02, a 2.38% decline in just five trading days.

Is this just a regular dip, or a sign that the market’s mood is shifting?

The truth is, the numbers alone don’t tell the full story. To really understand what’s happening, we need to look at the NEPSE chart, not just where the index ended, but how different sectors performed, which stocks rose or fell sharply, and where the money actually flowed this week.

The good news? You don’t need to be a finance expert to keep up.

In this article, we’ll break down this week’s market trends in full detail. Just clear insights on who gained, who lost, which sectors are heating up, and what it all means for your next move.

Let’s make sense of what’s behind the dip, and what to keep an eye on in the days ahead.

The NEPSE Index: What’s Behind the Dip?

This week, the NEPSE index closed at 2,658.02, dropping by 64.71 points from the previous week. Now, if you’re new to the stock market, you might wonder, is that a big deal?

In percentage terms, this drop represents a 2.38% decline, which is significant when we look at the broader picture. It shows that investor confidence across the market has taken a hit, and this wasn’t just a dip in one or two companies. It was a market-wide slowdown.

When we analyze the NEPSE chart across sectors, it’s clear the red ink spread widely:

Only one sector, Manufacturing & Production, managed to stay positive this week. Every other major sector saw a decline, reflecting a broad-based market correction.

So, what’s dragging the NEPSE index down?

Several factors could be at play:

• Profit-taking: Many investors may have decided to cash in their gains from earlier weeks, triggering a wave of selling.
• Economic caution: With inflation concerns, interest rate discussions, or global uncertainty in the background, market sentiment may be turning cautious.
• Lack of new triggers: No major policy announcements or market-moving events meant there wasn't enough fresh momentum to keep the market going up.

As we look at the NEPSE chart over the past few days, you can clearly see the downward slope, a sign that more people were selling than buying.

But remember: every dip tells a story. And understanding that story helps investors make smarter decisions in the long run.

Let’s keep exploring what this week’s NEPSE trends reveal.

Trade Distribution: More Sellers Than Buyers

To understand what really happened in the market this week, let’s take a closer look at the NEPSE chart showing trade distribution, which simply tells us how many trades were made at rising prices versus falling prices.

Here’s what the numbers say:

• 37% of transactions were made when prices were going up
• 63% of transactions were done while prices were going down

In plain numbers, that’s:

• 122,200 trades at increasing prices
• 208,300 trades at decreasing prices

This distribution points to one clear conclusion: there were far more sellers than buyers this week.

In stock markets, when the majority of trades are happening at lower prices, it often means that investors are either losing confidence, locking in profits, or simply waiting on the sidelines due to uncertainty. This type of behavior creates what experts call “selling pressure.”

So when we look at the NEPSE index and ask, “Why did it fall this week?”,  this chart provides a big piece of the puzzle.

It’s not necessarily about bad news. Sometimes, markets fall just because more people are looking to sell than buy, creating downward momentum in prices across the board.

The good news? These phases don’t last forever. The NEPSE chart may be red this week, but investor sentiment can shift quickly, especially if new opportunities or positive developments emerge next week.

Price Change Distribution: Most Companies in the Red

One quick glance at this week’s NEPSE chart tells a sobering story: the majority of companies listed on the Nepal Stock Exchange ended the week with lower share prices.

Let’s break it down:

• 215 companies saw their prices drop, with declines ranging between 0.0% to -12.2%
• Only 32 companies managed to post price gains

In simple terms, nearly 9 out of 10 stocks moved in the wrong direction; downward.

This kind of movement clearly reflects bearish market sentiment. When the majority of listed stocks are losing value, it’s a signal that investors are either pulling out money or waiting for better conditions before re-entering the market.

If you were one of the many retail investors who bought shares last week, there’s a high chance your portfolio took a hit. And if you picked stocks randomly without looking at trends or the NEPSE index, you were probably on the losing side.

But it wasn’t all doom and gloom.

Despite the overall decline, a few standout companies defied the trend and posted impressive gains, some even hitting double-digit growth. These exceptions are important to study, because they often show where the market might be headed next or where value is still being discovered.

So, before we lose all hope, let’s zoom in on the top gainers and find out which companies actually managed to swim against the current in this week’s NEPSE chart.

Top Gainers: Who Managed to Swim Against the Tide?

Even in a down week, there are always a few stars that shine bright, and this week’s NEPSE chart had some surprise winners.

While the overall NEPSE index was heading south, a handful of companies surged upward with impressive gains. These are the stocks that went against the market trend and rewarded investors who took the bet:

Leading the pack were Nepal Micro Insurance and Crest Micro Life Insurance, both clocking over 60% weekly gains. That’s an incredible jump in just five trading days.

What’s Behind This Sudden Surge?

There are a few important reasons for their strong performance:

• Fresh IPO Listings with Strong Demand
  Both Nepal Micro Insurance and Crest Micro Life Insurance recently entered the secondary market after their Initial Public Offerings (IPOs).Their IPOs were massively oversubscribed, showing that investors were eager to grab a piece of these new insurance players. This pent-up demand helped fuel rapid price rises once trading began.

Details Behind the IPO Frenzy
Crest Micro Life Insurance issued 1.845 million shares. The IPO was oversubscribed by approximately 10.43 times by the closing date, with nearly 1.95 million investors applying for shares.
Similarly, Nepal Micro Insurance Company offered 1.845 million shares, and the demand was even stronger, with a total of 1.90 applications. It was oversubscribed by 13.2 times.
Both IPOs were so popular that most applicants didn’t get any shares in the allotment lottery. When these shares finally hit the NEPSE floor, heavy demand met limited supply, leading to sharp early gains.

• Market Buzz and Growth Expectations
  As insurance awareness grows, especially in rural and semi-urban areas, micro-insurance companies are seen as having strong long-term potential. Investors are betting that companies like Crest and Nepal Micro Insurance will be major players in an expanding market.
• Catch-up Rally and Momentum
  Newly listed companies often see heightened activity in their first few weeks of trading. With the overall NEPSE chart showing weakness elsewhere, many investors rotated into fresh, high-momentum stocks like these.
  More importantly, the NEPSE chart this week shows that even in bearish markets, pockets of opportunity exist, especially in underexplored or niche sectors.

For investors keeping an eye on future momentum, sectors like micro insurance and hydropower (as we’ll also see in the turnover and volume charts) could be worth watching more closely.

Top Losers: Who Took the Hardest Hits?

While a few companies managed to shine this week, most weren’t so lucky. If we flip the NEPSE chart to the other side, we find a list of stocks that faced steep declines, some dropping by double digits.

These were the biggest losers in terms of price drop over the week:

What’s behind these sharp falls?

A few possible explanations:

• Market sentiment: Often, stocks decline not just because of poor performance, but due to negative sentiment like fear, uncertainty, or even social media-driven speculation can lead to panic selling.
• Profit booking: Investors might be locking in gains, causing prices to correct.
• Sector-specific weaknesses: Companies like Himalayan Power Partner and Balephi Hydropower are in the energy space, which, while high-interest, can also be volatile and speculative, especially if project progress or power purchase deals hit a roadblock.
• Finance sector drag: The presence of Green Development Bank, Lumbini Bikas Bank, and Best Finance on this list signals possible pressure in the development banking and finance sector, likely related to liquidity issues or cautious investor behavior in a tightening economy.

This week’s NEPSE index decline wasn’t caused by a few isolated falls, it was pushed down further by these heavy losses. When key companies or popular stocks decline this much, they pull down investor confidence along with the overall index.

It’s a reminder that in stock markets, especially when reading the NEPSE chart, big drops often follow big rises. The key is understanding the context behind those numbers, and not reacting to fear alone.

Top Turnover: Where Did the Money Flow?

Now let’s shift our focus from price movements to something equally important: where the money actually went.

One of the most telling parts of the weekly NEPSE chart is the turnover data, which shows the total value of shares traded for each company. In simple terms, it reflects investor interest. The more money changing hands, the more active and liquid a stock is.

Here are the companies that saw the highest turnover this week:

So, what does this tell us?

There’s one clear trend: hydropower and energy companies are dominating the money flow.

Four of the top six companies in terms of turnover this week belong to the hydropower sector. Despite the market downturn and the drop in the NEPSE index, these companies managed to attract huge volumes of investor capital.

This suggests a few things:

• Investors are still optimistic about the long-term potential of Nepal’s hydropower industry, especially as infrastructure projects continue and electricity exports to India grow.
• Liquidity matters: These stocks are seeing heavy trading because investors feel confident that they can enter and exit their positions easily.
• Momentum matters: Some of these companies, like Radhi Bidhyut and Universal Power, also showed strong price gains. When prices and volumes go up together, it signals strong momentum.

Even more interesting is that this high turnover came during a week when the overall NEPSE index was falling, meaning that smart money may be rotating out of weak sectors and into high-conviction plays like power and infrastructure.

If you’re someone who follows the NEPSE chart to spot where the action is happening, this data tells you where to look next, and possibly where the next rally could begin.

Most Active Stocks: Where Was the Buzz?

Here’s the list of companies with the highest volume of shares traded:

What does this tell us?

1. High volume = High interest.
These stocks saw the most buying and selling, a sign of strong investor attention and liquidity.

2. Hydropower leads the buzz.
All five are energy companies, reinforcing a clear trend in this week’s NEPSE chart: the hydropower sector is where most of the action is.

3. Good for short-term traders.
High activity means easier entries and exits,  ideal for those looking to capitalize on short-term moves, even as the NEPSE index fell.

If you're watching for momentum or planning your next trade, these stocks are worth tracking.

Sector Spotlight: Manufacturing & Production Shines

When we glance at the NEPSE chart for this week, one sector clearly stood out from the sea of red: Manufacturing & Production.

While the overall NEPSE index fell by 2.38%, the Manufacturing & Production sector bucked the trend and posted a solid 1.57% gain for the week.

Why did Manufacturing & Production shine while others struggled?

Here are a few possible reasons:

• Increased industrial output: Reports of higher factory production or improvements in local manufacturing could have boosted investor confidence in companies within this sector.
• Positive earnings expectations: Investors might be anticipating stronger financial results from manufacturing companies, especially as domestic demand for goods picks up.
• Defensive play: In times of uncertainty, investors often move their money into "safer" sectors. Manufacturing and production businesses, which often have steady revenue, are considered defensive stocks, meaning they tend to perform better even when the broader market is falling.

Meanwhile, other sectors weren’t as lucky.

The Development Bank sector, in particular, took a beating, dropping by 4.76%. Finance, Banking, and Hotels & Tourism also saw significant declines, reflecting how sensitive these sectors are to economic sentiment and liquidity conditions.

When you study the NEPSE chart, spotting which sectors are holding strong even in tough weeks is crucial. Often, sectors that resist broader declines are the ones that lead the next wave of market recovery.

So, if you’re thinking about where to focus your attention next, keeping an eye on the Manufacturing & Production sector could be a smart move.

What This Means for Retail Investors

So what should regular investors take away from this week’s NEPSE chart and NEPSE index trends?

Here are 3 key lessons:

1. Volatility is Normal

Markets rise and fall. A 2.38% dip in NEPSE index isn't catastrophic, but it shows how sensitive investor sentiment can be, especially in a market like Nepal’s, where liquidity and news flows drive prices more than long-term fundamentals.

2. Micro Insurance is Gaining Traction

If two of the biggest gainers are in micro-insurance, that’s a trend worth watching. It may signal investor interest in inclusive finance and underpenetrated sectors.

3. Hydropower = High Risk, High Attention

Hydropower stocks were among the most traded, most volatile, and some even topped the turnover charts. They may offer big opportunities, but also carry big risks, especially during market downturns.

Final Thoughts: Stay Informed, Stay Calm

The NEPSE index may have dipped this week, but every downtrend brings a potential opportunity. The trick is to stay calm, analyze data, and focus on long-term value, not short-term fear.

If you're just getting into the stock market, follow weekly NEPSE charts and index summaries like this one. They’ll help you understand where the market is headed, without needing to decode finance jargon.

Want more such plain-language NEPSE breakdowns every week? Follow us for weekly insights, trends, and analysis you can actually use.

And don’t forget: when the market gets choppy, information is your best investment.

Additional Resources:

• New NEPSE Rule: Closing Price Now Based on Weighted Average
• How to Check IPO Results in Mero Share: A Complete Step-by-Step Guide 
• Avoid These 5 Mero Share Mistakes for IPOs and Portfolio Success