Top Gainers in NEPSE: Insights from the Market’s Best Performers
Uncover the lessons hidden behind NEPSE's top-performing stocks. Whether it’s hydropower momentum or steady gains in banking and insurance, see which sectors are driving the market and why they matter to investors.
Introduction
With hundreds of companies listed on NEPSE, tracking which stocks are outperforming offers a powerful lens into market sentiment and economic trends. Over the past few weeks, several stocks have risen significantly—especially in sectors like hydropower, commercial banking, and insurance.
But what’s really behind these gains? Let’s explore the factors pushing these stocks higher and what they teach us about investing in Nepal’s stock market.
1. Recent Market Leaders: Who’s on Top?
In early July 2025, hydropower companies like Barun Hydropower and Panchakanya Mai posted solid daily gains of 6.2% and 4.3% respectively.
On July 14, NIC Asia Bank rose nearly 10%, becoming both the day’s biggest gainer and the most-traded stock by value.
Meanwhile, the microfinance index led sector-wise performance with a 3.5% rise, whereas the hydropower sector showed mild correction following a policy shift.
2. Hydropower Stocks: High Potential, High Volatility
Hydropower remains one of NEPSE's most dynamic segments:
It saw a surge in late June, followed by marginal gains into July.
Certain companies like Chhyangdi Hydropower and Green Development Bank hit the daily upper limit, driven by speculation and strong retail participation.
Takeaway: Hydropower stocks are highly reactive to both news and events such as floods, infrastructure delays, and project milestones. While the sector offers promising returns, investors should remain cautious of short-term hype.
3. Commercial Banks: The Market’s Reliable Backbone
Banking stocks continue to attract investor interest due to:
Strong earnings growth and dividends
Improved liquidity conditions after NRB's monetary policy review
NIC Asia’s standout performance is a prime example of how bank stocks can lead rallies when confidence is high.
Takeaway: Banks provide portfolio stability and are a reliable indicator of broader market sentiment. Monitor their quarterly reports, interest income, and loan books for deeper insight.
4. Insurance and Microfinance: Emerging Growth Engines
Beyond the usual favorites, insurance and microfinance firms are also making headlines:
The microfinance sector led in growth percentage-wise, suggesting rising investor interest.
Insurance companies, though less volatile, benefit from long-term demand and increasing financial awareness in the population.
Takeaway: For long-term investors, these sectors offer a blend of stability and growth potential—ideal for portfolio diversification.
5. NEPSE’s Sectoral Landscape: A Changing Dynamic
Recent data show:
Finance-related companies (banks, microfinance, insurance) account for nearly 50% of NEPSE’s market cap.
Hydropower, while volatile, continues to dominate in terms of trading volume.
Takeaway: While the market is still heavily tilted toward finance and energy, investors should aim for balanced exposure across sectors.
6. What Fuels Stock Performance in Nepal?
Several factors combine to lift stock prices on NEPSE:
a. Strong Financials
Companies reporting rising profits (e.g., Universal Power with a 42% profit jump) tend to outperform.
b. High Liquidity
Stocks with high turnover, like NIC Asia, indicate institutional and retail interest.
c. News Sensitivity
Announcements about hydropower plants, dividend declarations, or monetary policy shifts can all trigger sharp movements.
d. Macroeconomic Signals
When NRB announced a new governor, NEPSE responded with a 53-point jump across all sectors—showing how sensitive the market is to central decisions.
7. Key Takeaways for Investors
Market Insight | Investor Strategy |
|---|---|
Hydropower moves fast | Stay updated on news, avoid hype-based trading |
Banks show fundamentals | Analyze quarterly reports, focus on dividend payers |
Insurance/microfinance rise | Use for diversification and long-term growth |
Volume = Interest | Follow turnover data for stock momentum |
Policy drives performance | Understand NRB and sector-specific regulatory changes |
8. How to Apply These Lessons
Check quarterly earnings for consistent growth.
Track trading volume to spot emerging trends.
Follow official sources like NRB and NEA for policy changes.
Diversify across sectors to reduce risk and maximize opportunity.
Use digital platforms like MeroLagani and ShareSansar for updated data.
Conclusion
The top gainers on NEPSE offer more than just profit opportunities—they highlight deeper sectoral trends and market dynamics. Hydropower stocks may capture the headlines, but banking, insurance, and microfinance often provide more sustainable growth. By studying these patterns, investors can better distinguish between short-lived hype and genuine long-term value.