NEPSE Daily Turnover Hits Billions: What It Means for the Market

Introduction: The Liquidity Boom

In recent sessions, NEPSE has seen daily turnover exceeding billions of rupees.

👉 High turnover means more trading, more liquidity, and stronger price discovery—but also more speculation.

1. What Is Turnover in NEPSE?

• Turnover = Total value of shares traded in a day.

• Indicates market activity and liquidity.

• Higher turnover = easier to buy and sell stocks without big price changes.

2. Why Rising Turnover Matters

• Shows strong investor participation.

• Reflects liquidity from remittances, low interest rates, or positive sentiment.

• Attracts new investors (confidence in market depth).

3. Signals for Investors

• High turnover + rising NEPSE = Bullish liquidity-driven rally.

• High turnover + falling NEPSE = Panic selling.

• Low turnover = Weak sentiment, possible sideways trend.

4. Case Studies in Nepal

• 2021 Bull Run: Daily turnover crossed Rs. 15 billion at peak optimism.

• 2022 Liquidity Crunch: Turnover collapsed as banks tightened credit.

• 2024–25 Recovery: Turnover rising again with remittance-driven liquidity.

5. Sector Impact of Liquidity

• Banks: Direct beneficiaries of deposits and credit flows.

• Hydropower: Retail hype often boosts turnover.

• Insurance: Dividend rumors drive high trade value.

• Microfinance: Volatile but liquidity-driven.

6. Risks of Rising Liquidity

❌ Can fuel pump-and-dump schemes.
❌ May inflate speculative bubbles.
❌ Retail investors may mistake liquidity for fundamentals.

7. Smart Investor Strategy

1. Watch turnover as a sentiment indicator, not a buy signal.

2. Compare turnover with sector indices for better insights.

3. Use Nepalytix turnover analytics to track unusual activity.

4. Be cautious in hype-driven high-turnover rallies.

Conclusion: Turnover = Market Pulse

Turnover is the heartbeat of NEPSE.

👉 For investors:

• Rising turnover shows liquidity and opportunity.

• But high volume also attracts manipulation.