The Nepal Stock Exchange (NEPSE) Index rebounded in Monday’s trading session, posting a gain of 12.03 points or 0.43% to close at 2,761.86. This recovery comes after the market had suffered a sharp 31.17-point loss in the previous session, offering investors a short-term boost in sentiment.
Market Performance and Intraday Movement
The benchmark index began the day at 2,768.40 and showed mixed momentum throughout the session. It reached an intraday high of 2,773.69 before retracing to the day’s lowest point at 2,741.39. The market’s rebound indicates renewed buying interest after the recent pullback, although analysts caution that volatility may persist in the coming days.
Trading Volume and Turnover
Trading activity was relatively strong, with 11,440,844 shares changing hands across 326 listed companies through 68,775 transactions. The total turnover for the day reached Rs. 5.1 Arba, reflecting active participation from both retail and institutional investors.
At the end of the trading day, NEPSE’s total market capitalization stood at Rs. 46.17 Kharba, while the float market capitalization, representing the value of shares readily available for public trading, was recorded at Rs. 15.65 Kharba.
Hotels and Tourism Sector Sees Positive Momentum
The Hotels and Tourism Index mirrored the overall market’s positive momentum, adding 30.47 points or 0.43% to close at 6,995.17. This gain comes after the sector had suffered a steep 75.99-point loss in the previous session.
The index opened at 6,964.70, peaked at an intraday high of 7,017.70, and touched a low of 6,947.79 before closing higher. The rebound in this sector suggests renewed investor confidence, possibly driven by expectations of rising tourism activity and improved earnings prospects in the coming quarters.
Sectoral Trends and Market Sentiment
While Hotels and Tourism stood out in today’s session, market participants noted mixed performances across other sectors. Some segments attracted bargain hunting after recent losses, while others faced mild profit booking. Investors appeared to focus on fundamentally strong companies and sectors expected to benefit from seasonal and macroeconomic trends.
Market analysts believe that the rebound reflects short-term optimism, supported by a stable political environment, improving corporate earnings reports, and relatively positive macroeconomic indicators. However, they also point out that external factors, such as global market trends, commodity prices, and currency fluctuations, will continue to influence NEPSE’s direction.
Investor Participation and Liquidity Flow
The day’s turnover indicates healthy liquidity in the market, with active participation from both individual traders and institutional investors. Analysts suggest that the increased turnover could be linked to portfolio adjustments ahead of upcoming dividend declarations and annual general meetings of listed companies.
In particular, the Hotels and Tourism sector’s performance could be tied to the country’s recent tourism arrival data, which showed strong growth in August 2025. Expectations of a robust autumn tourist season may have spurred interest in tourism-related stocks.
Outlook: Optimism with Caution
Looking ahead, market experts advise a cautious but optimistic approach. While today’s gain has provided relief to investors, the index remains susceptible to short-term fluctuations. Traders are encouraged to monitor technical support and resistance levels closely, as well as broader economic indicators that could influence sentiment.
With increased investor activity in sectors tied to the real economy, such as tourism, banking, and hydropower, there is potential for NEPSE to maintain its upward momentum in the near term. However, sustained growth will depend on the market’s ability to attract continued buying interest and maintain strong liquidity inflows.
The 12.03-point rise in NEPSE and the rebound in the Hotels and Tourism sector offer a positive signal after last week’s sharp decline. Increased turnover and active trading reflect growing investor engagement, though market watchers remain alert to possible volatility ahead.
If the current momentum continues, supported by strong sectoral performances and favorable economic developments, NEPSE could see a more stable uptrend in the coming weeks, providing opportunities for both short-term traders and long-term investors.
