NEPSE Sees Over NPR 3.7 Billion Turnover: Hydro Power Dominates Despite Mixed Sentiments

NEPSE Market Overview: February 1, 2026

The Nepal Stock Exchange (NEPSE) witnessed a highly active trading session on February 1, 2026, marking a day characterized by significant turnover and a concentrated focus on specific sectors. The market concluded the day with a robust total turnover exceeding NPR 3.72 billion, specifically NPR 3,721,133,092.46. This substantial figure was generated from the trading of 8,673,808 units of shares across 44,422 transactions, involving a wide array of 307 listed scrips. While the overall market sentiment appeared mixed, the sheer volume of transactions and the impressive turnover underscore continued investor engagement and liquidity within the Nepalese capital market.

Today's trading activity clearly demonstrated a powerful gravitational pull towards the Hydro Power sector, which alone accounted for more than half of the total market turnover. This dominance suggests that investors are keenly observing and participating in the energy sector, potentially driven by long-term growth prospects or recent developments. However, a deeper dive into the top turnover leaders reveals a nuanced picture, with both significant gainers and notable losers emerging from various sectors, hinting at a selective and discerning approach by market participants.

Detailed Market Summary and Key Indicators

Despite the absence of a specific NEPSE index movement in the provided data, the day's performance can be gauged by the vibrancy of trading activities. A turnover exceeding NPR 3.7 billion is a strong indicator of healthy market participation and liquidity. Such a high level of activity suggests that both institutional and retail investors were actively rebalancing portfolios, taking positions, or booking profits. The involvement of 307 scrips out of the total listed companies indicates a broad-based engagement, although the concentration of turnover in a few sectors points towards a more targeted investment strategy.

The average transaction size, derived from the total turnover and the number of transactions, also provides insight into market dynamics. With 44,422 transactions facilitating over NPR 3.7 billion in trades, the average transaction value stands at approximately NPR 83,767. This figure, while not definitive on its own, suggests a mix of small retail trades and larger institutional or high-net-worth individual transactions contributing to the overall market depth. The market's ability to absorb and facilitate such a large volume of trades efficiently speaks to the operational robustness of the NEPSE trading platform.

Sectoral Performance: Hydro Power Takes Center Stage

The sectoral breakdown for the day unequivocally highlights the overwhelming dominance of the Hydro Power sector. Contributing a staggering NPR 2,049,301,176.90 to the total turnover, it alone accounted for approximately 55% of the day's market activity. This pronounced focus on hydropower stocks suggests a strong bullish sentiment or significant speculative interest within this segment, perhaps fueled by expectations of favorable regulatory policies, project completions, or dividend prospects.

Following Hydro Power, the Manufacturing And Processing sector emerged as the second most active, albeit with a significantly lower turnover of NPR 484,554,971.30. This sector, while showing considerable activity, also saw one of its prominent scrips, SYPNL, register a substantial decline, indicating selective pressure. Development Banks, Commercial Banks, and Finance companies collectively contributed a significant portion of the remaining turnover, with NPR 247,959,185.10, NPR 179,599,398.90, and NPR 168,051,773.60 respectively. These financial institutions continue to be foundational pillars of the NEPSE, attracting consistent investor interest.

Other sectors like Hotels And Tourism (NPR 106,380,168.60), Investment (NPR 101,079,138.90), Life Insurance (NPR 96,464,344.70), and Microfinance (NPR 86,378,643.40) also saw moderate activity, reflecting diversified investor interest across the economy. Non Life Insurance, Tradings, Mutual Fund, and Non-Convertible Debenture sectors recorded comparatively lower turnovers, indicating either less liquidity or reduced investor enthusiasm in these segments for the day.

The concentrated activity in Hydro Power, juxtaposed with the varied performance of individual stocks within it, suggests that while the sector as a whole is attracting capital, investors are making specific choices within it, likely based on individual company fundamentals, project pipelines, and valuation metrics. This trend underscores the importance of fundamental analysis even within a broadly favored sector.

Top Turnover Stocks, Gainers, and Losers

The list of top turnover leaders provides a granular view of where the capital was flowing and which stocks captured the most attention. It's crucial to note that high turnover doesn't always equate to positive returns; it merely indicates high trading volume and value.

Top Turnover Stocks

Top Gainers (from Turnover Leaders)

Top Losers (from Turnover Leaders)

Among the top turnover stocks, Shiva Shree Hydropower Ltd (SSHL) and Union Hydropower Limited (UNHPL) emerged as significant gainers, posting increases of 5.41% and 3.88% respectively. Their strong performance contributed positively to the hydropower sector's overall turnover dominance. Conversely, SY Panel Nepal Limited (SYPNL) experienced the most substantial decline among the leaders, dropping by 5.41%. Shreenagar Agritech Industries Limited (SAIL) and Bandipur Cablecar and Tourism Limited (BANDIPUR) also faced notable downward pressure, with decreases of 3.45% and 2.69% respectively. Several other hydropower stocks like Radhi Bidyut Company Ltd (RADHI), Ankhu Khola Jalvidhyut Company Ltd (AKJCL), Ngadi Group Power Ltd. (NGPL), and Himal Dolakha Hydropower Company Limited (HDHPC) also closed in the red, indicating a mixed performance even within the most active sector. This divergence suggests that while the Hydro Power sector is drawing significant attention, investors are not uniformly bullish on all its constituents.

Technical Outlook and Investor Sentiment

Given the data, the NEPSE market on February 1, 2026, can be characterized by a high degree of selective activity. The substantial turnover, particularly in the Hydro Power sector, indicates robust liquidity and a willingness among investors to deploy capital. However, the mixed performance among top turnover stocks, with more losers than gainers in the elite list, suggests underlying caution or profit-booking in certain segments. This often leads to a "stock-picker's market," where individual company performance and sector-specific news drive price action more than broad market trends.

From a technical perspective, without the NEPSE index value, it's challenging to pinpoint exact support and resistance levels. However, the high volume in specific sectors like Hydro Power could indicate that these stocks are either consolidating before a potential breakout or experiencing distribution after a significant run-up. Investors should closely monitor the price action and volume patterns of these high-turnover stocks. A sustained increase in volume accompanied by positive price movement could signal accumulation, while high volume with declining prices might suggest selling pressure. The presence of both strong gainers and significant losers among the most traded scrips points to a market that is currently in a phase of price discovery, where different stocks are reacting to varying fundamental news and technical levels.

The substantial turnover in the Manufacturing And Processing sector, despite a major stock like SYPNL seeing a significant dip, warrants attention. This could indicate either a rotation of capital within the sector or a re-evaluation of specific companies. Similarly, the consistent activity in financial sectors (Development Banks, Commercial Banks, Finance) implies their role as relatively stable, albeit slower-moving, components of investor portfolios. Investors are advised to look beyond the headline turnover figures and delve into the underlying reasons for individual stock movements and sector-wide trends.

Conclusion and Actionable Advice

Today's trading session on the Nepal Stock Exchange was undeniably dynamic, highlighted by a massive turnover of over NPR 3.7 billion. The Hydro Power sector was the undeniable engine of this activity, capturing over half of the market's total value traded. While this concentration indicates strong investor interest in the energy segment, the mixed performance of individual stocks within this and other high-turnover sectors underscores the importance of diligent research and selective investment strategies.

For investors, the current market environment demands prudence and a well-informed approach. Rather than chasing rapidly moving stocks, it is advisable to focus on companies with strong fundamentals, clear growth prospects, and reasonable valuations. The high trading volumes provide opportunities for both entry and exit, but these decisions should be based on thorough analysis rather than speculative fervor. Monitoring the financial health of companies, understanding their business models, and staying updated on regulatory changes will be crucial for navigating this selective market. Diversification across different sectors and scrips, even within favored sectors like hydropower, can help mitigate risks. As always, consulting with a financial advisor before making significant investment decisions is recommended. The NEPSE continues to offer exciting opportunities for long-term growth for those who approach it with strategy and patience.