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NEPSE Chart This Week: Why Did 212 Stocks Decline?

by Khatapana

Jun 6, 2025 - 12 min read

NEPSE Chart This Week: Why Did 212 Stocks Decline?

NEPSE slipped nearly 2% this week with 212 stocks in the red. What’s behind the drop? Dive into sector moves, investor sentiment, and what the NEPSE chart really reveals.

If you’re an investor in Nepal, this week’s NEPSE chart might have felt like a reality check.

The NEPSE index dropped by 52.10 points, closing at 2,640.96, which is about a 1.93% decline compared to the previous week. It wasn’t a dramatic crash, but it was a clear signal that the market’s mood is cautious, if not downright nervous.

So, what’s really going on?

Every week, hundreds of thousands of investors; from casual traders to full-time professionals, watch the NEPSE chart for signals. Is the market trending up or down? Are certain sectors breaking out or breaking down? Are people optimistic, or are they quietly exiting positions?

This article is here to help you decode all that. We’re breaking down everything that happened in NEPSE this week; sector trends, top gainers and losers, turnover activity, and what the NEPSE chart actually says about where the market might be heading.

If you’re new to the stock market, don’t worry, we’ll keep things simple, and straight to the point. And if you’re already a regular on the NEPSE floor, there’s plenty here to help you see the bigger picture.

Let’s start with the most obvious question: why did NEPSE fall this week?

Sector Breakdown: Who Carried, Who Crashed?

When the NEPSE index falls by almost 2% in a week, it’s rarely because of one or two bad apples. To truly understand the market’s mood, we need to dig into the sectoral breakdown, and that’s where the NEPSE chart becomes your best friend.

This week, it painted a pretty clear picture: red across the board, with just one sector holding on to green.

Let’s walk through what actually happened, sector by sector.

1. Investment Sector: The Lone Gainer

Change: +0.92%

Amid widespread selling pressure, the investment sector stood out. Not because it soared, but because it simply didn’t fall. A 0.92% gain may seem modest, but when every other line on the NEPSE chart is pointing downward, even a small uptick means something. Investors might see this sector as a defensive play for now, or it could just be a pause before the next move.

2. Hydropower: Cooling Off Gracefully

Change: -0.58%

Hydropower, one of the most active sectors in recent months, saw a mild correction of 0.58%. This wasn’t panic-selling; more like a breather. The NEPSE chart shows a gentle downward slope, hinting that investors are still interested but perhaps waiting for fresh catalysts before piling in again.

3. Hotels & Tourism: Monsoon Blues Begin

Change: -0.74%

The tourism sector slipped by 0.74% this week, a likely reflection of the upcoming monsoon season, which usually means lower foot traffic and bookings. Nothing dramatic here, but the slight decline in both price and volume points to investors locking in gains and stepping aside for now.

4. Insurance & Industry: Quiet But Consistently Down

Manufacturing & Processing: -1.48%
Life Insurance: -1.55%
Non-Life Insurance: -1.65%

These sectors didn’t dominate the headlines, but they all steadily lost ground. On the NEPSE chart, the movement is clear; gentle but continuous declines. This suggests investors are in wait-and-see mode. No clear momentum, and no strong reason to jump in just yet.

5. Banking, Finance, and Microfinance: The Big Drag

Banking: -3.93%
Finance: -1.85%
Microfinance: -2.61%

Here’s where the market really took a hit.

The Banking sector, which holds heavy weight in the index, dropped by a steep 3.93%, the sharpest decline of all sectors this week. On the NEPSE chart, it’s one of the most dramatic downward curves.

Finance companies weren’t spared either, falling 1.85%, while microfinance stocks, which tend to be more volatile, dropped 2.61%. This signals risk aversion in the financial space overall.

6. Development Banks and Trading: Still in the Red

Development Banks: -1.84%
Trading: -2.08%

Both sectors saw moderate losses, though they’re less influential in pulling down the overall index. That said, they reflect the broader bearish sentiment. The NEPSE chart shows their steady decline, mirroring a general lack of confidence in short-term gains from these stocks.

7. Others: Following the Trend

Others: -1.83%

This catch-all category includes companies that don’t fall neatly into the standard industry buckets. They too saw a decline, almost in sync with the broader index. No outliers here, just more red on the NEPSE chart.

What the Sectoral NEPSE Chart Really Tells Us

Zooming out, the NEPSE chart this week reveals a market without a clear leader.

Only the investment sector was up. Everything else; from hydropower and tourism to banks and manufacturing, was down. And notably, the sectors with the most influence on the index (like banking and microfinance) were also the ones that fell the hardest.

What does this mean? Investors seem unsure. They’re avoiding aggressive plays, rotating cautiously, and waiting for clearer signals, whether it’s from the macroeconomic environment, budget announcements, or company earnings.

This week’s chart didn’t scream fear, but it didn’t show confidence either.

Gainers vs. Losers of This Week

This week’s NEPSE chart mostly trended downward, but that doesn’t mean every stock followed the same path.

Even in a bearish week, the stock market is never completely one-sided. Some companies stood out for the right reasons; posting double-digit gains, while others quietly slipped or tumbled.

Let’s take a closer look at the biggest gainers and losers of the week and what they might be signaling about investor behavior.

1. Top Gainers of the Week

Despite NEPSE’s 1.93% drop, 36 companies closed higher, and a handful of them performed exceptionally well.

Pure Energy Ltd. (PURE): +46.37%
Easily the week’s top performer. In a sea of red, PURE’s nearly 50% gain lit up the NEPSE chart. The sharp rise follows its recent secondary market listing on May 27, after a highly oversubscribed IPO that created strong investor interest. The buzz around the company stems from its entry into Nepal's growing energy sector and limited tradable shares, which triggered high demand and multiple upper circuits.
Om Megashree Pharmaceuticals Ltd. (OMPL): +20.66%
A strong second, OMPL’s gain suggests growing retail interest in pharmaceutical stocks. This kind of post-listing surge isn’t uncommon-newly listed stocks often attract traders and investors eager to capture early gains based on future growth potential.However, after a relentless upward climb, OMPL finally showed signs of cooling off. On the last trading day of the week, the stock saw a significant pullback of -9.30%, closing at Rs. 1809.24 after reaching a high of Rs. 2167.20.
Saptakoshi Development Bank Ltd. (SAPDBL): +15.64%
A standout among development banks this week. There was no major public news, but SAPDBL's rise may be linked to dividend expectations or technical trading patterns.
Butwal Power Company Ltd. (BPCL): +12.35%
A seasoned player in the hydropower sector, BPCL has a history of attracting both institutional and long-term investors. Its double-digit gain this week provided some support to the otherwise sluggish hydropower index.
Narayani Development Bank Ltd. (NABBC): +11.38%
Another small-cap development bank gaining momentum. These banks often move quickly on thin volumes, and any news around mergers or capital increases can trigger buying interest.

These gainers prove that even during broader market declines, there are always pockets of optimism, usually in smaller or speculative counters. But it’s important to note that such rapid rises can also reverse quickly, especially if not backed by fundamentals.

2. Top Losers of the Week

Now for the flipside: 212 stocks declined this week, and while many saw only mild drops, a few took deeper hits.

Samudayik Laghubitta (SLBSL): -9.05%
Microfinance stocks have been under pressure lately, and SLBSL was among the worst hit. Concerns about overdue loans, stricter regulatory oversight, or simply market fatigue may be weighing down this sector.
Unnati Sahakarya Laghubitta (USLB): -8.43%
Another microfinance stock facing similar pressure. Microfinance is a high-risk sector, and when sentiment turns, prices can slide fast.
Upper Hewakhola Hydropower (UHEWA): -8.18%
Even though the hydropower index was relatively stable this week, certain smaller players like UHEWA saw corrections, likely due to profit-taking or valuation concerns.
Green Development Bank (GRDBL): -7.42%
This decline stands out given the relative stability in other development banks. It may be reacting to internal performance issues or just lack of investor interest at current pricing.
Machhapuchchhre Bank (MBL): -7.39%
A significant drop for a commercial bank. With the banking index falling sharply this week, MBL’s decline reflects broader worries in the financial sector, ranging from liquidity crisis to concerns about interest rates and subdued lending.

What the Gainers and Losers Tell Us About the NEPSE Chart

If you look at this week’s NEPSE chart closely, you’ll see a few clear patterns:

The biggest gainers were mostly smaller, low-cap stocks that tend to move quickly on rumors or technical triggers.
The biggest losers came from microfinance and banking, two sectors that are under pressure from broader economic uncertainty and regulatory developments.
Some stocks like BPCL and SAPDBL managed gains even as their sectors declined overall, suggesting investors are still willing to bet on select names.

This kind of mixed movement is typical in a market where confidence is shaky. Investors aren’t abandoning the market entirely, they’re just being more cautious, rotating between sectors and picking their battles carefully.

Turnover & Trading Volume: Where the Money Flowed This Week

If prices show us how investors feel, turnover and trading volume show us where they’re actually putting their money. This week’s data gives us an important layer of insight, especially when the NEPSE chart is pointing down.

So, how much money changed hands this week? And which stocks drove most of the activity?

1. Total Turnover: Still Active, But Lower Than Usual

The total weekly turnover stood at Rs. 28.12 billion, with about 59.84 million shares traded across all listed companies.

That’s a decent volume, especially during a week when the market was down nearly 2%. It tells us that although the sentiment was weak, investors were still actively trading. This wasn’t a case of everyone sitting on their hands.

Also, this was over just 4 trading days, which makes the activity level fairly strong despite the shorter window.

But there’s a key nuance here: the majority of the turnover was concentrated in a few familiar names.

2. Most Traded Stocks: The Crowd Favorites

Here are the top stocks by total turnover (i.e., total value of shares traded):

Radhi Bidyut Company Ltd.
Ngadi Group Power Ltd.
Universal Power Company Ltd.
Butwal Power Company Ltd.
Arun Kabeli Power Ltd.

All five are hydropower companies.

Yes, even in a week when the hydropower index was down slightly, these stocks dominated trading. That shows just how deep retail interest in the power sector still is. Traders seem willing to ride the wave, even if short-term price trends are slowing.

This trend is also visible in the NEPSE chart when you filter by volume and value; hydropower lines are still among the most active, if not the most profitable this week.

3. Most Active by Share Volume: Not Just the Big Names

If you look at trade volume (i.e., number of shares traded rather than value), you’ll notice smaller-cap stocks also attracted serious activity:

Ngadi Group Power led the pack with 4.94 million shares traded.
It was followed by Arun Kabeli Power, Universal Power, Radhi Bidhyut Company, and Hydroelectricity Invest. And Dev.

Many of these stocks are relatively low priced, which makes them more attractive for retail traders. Combine that with sector hype, and you get massive volume, even if the actual price movement isn’t that dramatic.

4. What It All Means: Sentiment vs. Strategy

The turnover pattern this week reveals something crucial:

Investors aren’t leaving the market, they’re just being highly selective.
Instead of long-term, fundamentals-based buying, the focus seems to be short-term plays in known momentum sectors like hydropower.
There’s limited interest in banking and finance stocks, despite their significant index weight, likely due to lack of immediate upside and regulatory noise.

Even on a declining NEPSE chart, high turnover in specific counters shows that traders are still engaged, they’re just not betting on everything.

In short, the money didn’t stop moving this week. It just moved more carefully, and mostly into familiar waters.

Up next: we’ll interpret this week’s price action and participation across all stocks to get a better sense of where the market could be heading next.

Trade Distribution: A Market That’s Slipping, Not Crashing

Let’s say you’re watching the stock market wondering:
"Are most investors buying, or are they selling?"

The trade distribution helps answer that. It shows how many trades went up in price and how many went down. And this week, the market gave us a pretty mixed but cautious picture.

1. 50/50, But Don’t Be Fooled

According to the data:

50% of all trades increased in price
50% of trades decreased

That might sound balanced, but here’s the thing:
Most of the trades that went down didn’t fall by a lot, but there were more of them than the ones that went up by a similar amount.

For example:

Over 144,900 trades had prices drop between 0% and -14.2%.
Meanwhile, around 110,400 trades increased by up to +14.2%.

So yes, it was evenly split in numbers, but more money was going toward stocks that were falling slightly in price.

2. Small Drops, Not Big Crashes

What’s interesting is that very few trades saw big changes, either up or down.

Only about 2,900 trades saw a strong price rise (over +56%).
Just 903 trades fell sharply (more than –42%).

This tells us something important:
The market didn’t crash this week. Investors weren’t panicking. Most stocks just lost a little value; enough to drag the overall NEPSE chart lower, but not enough to trigger fear.

3. What Does This Mean for Us?

If you’re a regular investor wondering why your portfolio dipped a little this week, this is why.

Most stocks didn’t rise much.
Most didn’t crash either.
They just slipped.

That’s what we call a “soft decline.”
The NEPSE chart may have fallen by 52 points, but this trade distribution shows that the market is still active. It’s just more cautious right now.

Next up: we’ll look at the overall price change distribution across all companies to see how many stocks really moved, and how that reflects market sentiment.

What Do 212 Declining Stocks Tell Us?

Let’s start with the headline stat:
Out of all listed companies this week, 212 saw their prices fall. Only 36 ended up in the green.

That alone paints a clear picture; market sentiment was bearish.

But if you dive a little deeper, you’ll find that the situation wasn’t dramatic. Most of those 212 stocks didn’t collapse. They just dipped slightly, usually by 0–14.2%. That’s a soft decline, not a meltdown.

On the flip side, only a few stocks managed to post big gains; mostly newly listed IPOs like Pure Energy and Om Megashree Pharmaceuticals. These weren’t surprise breakouts. Lately in Nepal’s market, IPOs that get heavily oversubscribed often skyrocket after listing, hitting the 10% daily circuit and quickly climbing toward Rs. 2,000 or more. It’s become a familiar pattern. But outside of those few post-IPO rallies, most stocks moved only slightly. Just like the trade distribution showed, this wasn’t a week of chaos. It was a week of quiet selling and selective buying.

Now here’s the twist: despite the index falling by nearly 2%, the total number of transactions was split 50/50 between gainers and losers.

So what does that mean?

It means the market was active. People were still trading, just more defensively. Investors weren’t running away; they were rotating their money into selective stocks they saw potential in, and quietly selling off others.

In short:
The NEPSE chart might look like it’s dipping, but under the surface, some parts of the market are still very much alive.

What’s Behind the Decline? Looking Beyond the NEPSE Chart

So why did the NEPSE chart dip nearly 2% this week? Was it panic? Was it something policymakers did? Or is the market just in wait-and-see mode?

Let’s explore what’s really going on.

1. Budget 2082/83 Didn’t Move the Needle

The new federal budget felt more routine than reformist. No big incentives for capital markets, no tax relief for investors, and no aggressive infrastructure push that would excite sectors like construction, banking, or manufacturing. It wasn’t bad, it just wasn’t bold. In a market that was already cautious, this kind of budget doesn’t change much.

2. NRB’s Q3 Review: Liquidity Is Plentiful, But Credit Is Cautious

Contrary to popular belief, there’s no liquidity crunch in the banking system. In fact, banks are flush with cash.

NRB absorbed over Rs. 171 Kharba from the market (to prevent overheating)
Banks barely used emergency funds (only Rs. 2.7 Arba in overnight borrowing)
NRB bought USD 3.63 billion from banks, injecting Rs. 484 Arba back into the system

So what’s the issue?

It’s not the supply of money, it’s the demand for loans. Despite cheaper interest rates, credit growth is lagging. Businesses are borrowing less. Banks are being more selective, partly because bad loans (NPLs) are rising across all types of financial institutions.

So while the NEPSE chart is dipping, it's not due to tight money. It's due to weak confidence in borrowing and lending, especially in finance-heavy sectors like banking and microfinance.

3. Global Slowdown & Market Sentiment

The world economy is slowing. IMF projects just 2.8% global growth in 2025. For Nepal, this matters. Slower growth in major trade partners can:

Reduce export demand
Slow remittance inflows
Lower tourist arrivals

NRB’s review flagged this too. Nepal is doing better than last year, but it’s not immune to international headwinds. This global caution is also reflected in local stock behavior. Investors are watching, not rushing.

4. IPO Lock-Ups Ending, Retail Selling Begins

Recent IPOs (especially in hydropower and microfinance) are hitting the secondary market. Many retail investors are now cashing out to recover their locked-up funds, leading to short-term selling pressure. This also explains the drop in small- and mid-cap stocks, even when fundamentals remain unchanged.

5. A Market Playing Defense: “Flight to Safety” in Real Time

What we’re seeing is a classic case of investor caution:

Selling higher-risk stocks (like microfinance, some hydropower)
Avoiding stagnant sectors (insurance, manufacturing)
Moving into “safer” plays like investment companies
Or simply sitting on cash, waiting for clearer signals

It’s not fear. It's a defensive strategy. When confidence is low, investors reduce exposure to risk and move slowly, and that’s exactly what the NEPSE chart is reflecting this week.

The weekly index drop of 1.93% isn’t about any one issue, it’s the result of a few overlapping signals:

Plenty of liquidity, but cautious lending
Falling interest rates, but slow private sector response
Stable inflation, but rising bad loans
Budget without big reforms
Global economy cooling off

So while things are not bad, they’re not exciting either, and that’s enough for investors to pull back slightly.

The NEPSE chart is showing hesitation, not panic. It’s a market waiting for clarity; on policy, on economic momentum, and on where real growth will come from in the months ahead.