NEPSE Plunges 41.78 Points as Profit-Taking and Margin Pressures Trigger Broad Sell-Off

ShareSanskar | Shrawan 20, 2082

NEPSE closed deep in negative territory, plunging by 1.45% or 41.78 points to end the session at 2,833.57. The downturn was mirrored in the Sensitive Index, which tracks the performance of fundamentally strong, large-cap companies, slipping 1.31% to 488.39. Trading activity remained robust, with 22,207,142 shares from 325 listed companies changing hands, generating a turnover exceeding NPR 9.33 billion. Analysts attributed the decline primarily to aggressive profit-booking after an extended rally of over 400 points in recent sessions, compounded by margin call pressures on leveraged investors.

Sectoral performance painted a broadly negative picture, with 11 out of 13 indices closing lower. Microfinance (+0.44%) and Mutual Funds (+0.17%) were the only sectors to post gains, showcasing relative resilience amid the sell-off. The “Others” sector suffered the steepest loss, sliding 2.76%, followed closely by Development Banks (-2.46%), Finance (-1.85%), Investment (-1.71%), and Hydropower (-1.64%). The Banking index fell 1.08%, while Non-Life Insurance (-1.20%), Life Insurance (-1.42%), Manufacturing (-1.63%), Trade (-1.85%), and Hotels (-0.99%) also ended the day in the red.

In terms of trading activity, Himalayan Reinsurance emerged as the most actively traded stock, recording transactions worth over NPR 392.8 million. Trade Tower followed with NPR 370 million in turnover, while Shivam Cement (NPR 332.8 million), Butwal Power (NPR 305.8 million), and Ngadi Group Power (NPR 246.5 million) also featured among the top turnover leaders. This high level of liquidity across multiple blue-chip and mid-cap counters reflects both heightened investor participation and significant profit realization.

The session also highlighted notable divergences in stock performance. On the gaining side, Samaj Laghubitta and Unnati Sahakarya Laghubitta hit the upper circuit limit, while Bin Nepal Laghubitta rose 4.64% and Srijanshil Laghubitta advanced 4.22%. Conversely, Three Star Hydropower hit the lower circuit with a sharp 10% plunge. Trade Tower dropped 7.35%, Lumbini Bikas Bank slipped 5.40%, and Upper Solu Hydropower fell 4.80%, underscoring the intensity of selling pressure in select counters.

Market experts caution that volatility is likely to persist in the short term, particularly for investors using leverage. While the current pullback reflects healthy profit-booking after a sustained rally, they note that underlying economic fundamentals remain supportive for the broader market. As such, disciplined risk management and selective buying could prove prudent strategies for investors navigating this correction phase.